Congressman David Dreier (R-CA), Chairman of the House Rules Committee, praised today's passage of H.R. 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012, in the House of Representatives. This Dreier-sponsored legislation will help strengthen the American economy and restore tax fairness by providing a fast-track process to enact comprehensive, pro-growth tax reform in 2013. This bill coupled with H.R. 8, the Job Protection and Recession Prevention Act of 2012, represents the GOP plan to: (1) Stop the impending tax hike on America's job creators, and (2) Create more jobs through a simpler, fairer tax code.
"Our tax code is just not working for the American people," Dreier said. "The current system is unfair, it is byzantine in its complexity, and it is a drain on our economy. The magnitude and the urgency of our current economic challenges demand that we enact comprehensive tax reform in the near future. This legislation lays out a clear roadmap for reform, and helps to ensure its timely consideration in both the House and the Senate."
Added Dreier, "The only way for us to create opportunity for all Americans is to reignite our engines of growth. And we cannot spark new growth without addressing both the immediate crisis of impending tax increases and the long-term need for comprehensive reform that leads to a simpler, fairer tax code."
Summary of Legislation: H.R. 6169 establishes expedited procedures in the House and the Senate for consideration of comprehensive tax reform legislation.
The legislation defines a `tax reform bill' as a bill introduced by the chair of the Committee on Ways and Means before April 30, 2013 and entitled `A bill to provide for comprehensive tax reform.' Further, in order to qualify as a tax reform bill, the measure must be the subject of a certification to the House and Senate from the chair of the Joint Committee on Taxation that the bill as introduced contains the following proposals: (1) consolidation of the current individual income tax brackets into no more than two brackets of 10 and not greater than 25 percent; (2) reduction in the corporate tax rate to not greater than 25 percent; (3) repeal of the Alternative Minimum Tax (AMT); (4) broadening of the tax base to maintain revenue between 18 and 19 percent of the economy; and (5) change from a `worldwide' to a `territorial' system of taxation. The certification by the chair of the Joint Committee on Taxation is only applicable to the bill as introduced. The Committee intends that the certification is not required at any other stage in the legislative process for a bill to be eligible for the expedited procedures contained in the bill. The bill also contains procedures to facilitate going to conference on the tax reform bill and appointment of conferees.
Any committee that receives a referral on the tax reform bill must report the legislation to the House within 20 calendar days. Failure to report the legislation within that time period will result in an automatic discharge.
If the Rules Committee has not provided a special order for consideration of the tax reform bill within 15 legislative days after the bill has been reported or discharged, the majority leader (or after two additional legislative days any Member), may offer a motion to proceed to the tax reform bill.
If the motion to proceed is agreed to, debate on the bill is limited to four hours equally divided and controlled by the chair and ranking minority member of the Committee on Ways and Means. The bill is subject to amendment under the five-minute rule and one motion to recommit the bill is in order.
The bill must be referred to the Committee on Finance, which must report the bill within 15 calendar days after receipt of the bill in the Senate. Failure to report the legislation within that time period will result in an automatic discharge.
After the Finance Committee reports the tax reform bill or the bill is discharged, the majority leader (or after two additional session days any Member) may offer a motion to proceed to the bill. The motion is not debatable--cloture is not required before a vote on the motion to proceed.
Debate on amendments is limited to two hours on each amendment--cloture is not required before votes on individual amendments. Amendments must be relevant to the tax reform bill.
There is no limit on the total time available for debate on the tax reform bill--cloture on the underlying bill may still be required prior to a vote on passage.