Member Day Hearing on Matters Within the Committee’s Tax Jurisdiction

Committee on Ways and Means

2025-01-22

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Source: Congress.gov

Summary

The Ways and Means Committee conducted a member day hearing to advance President Trump's economic agenda by extending key provisions of the 2017 Tax Cuts and Jobs Act. Over 55 members testified on issues including tax relief for workers and small businesses, the child tax credit, estate tax, and the preservation of energy tax credits. Witnesses emphasized that expiring tax cuts would lead to significant burdens for families and businesses, with estimates showing tax hikes of up to 43% for small businesses and 25% for average taxpayers. The hearing focused on restoring economic growth, ensuring rural and agricultural communities remain viable, and promoting American manufacturing through pro-growth tax policies. Key topics included the permanent extension of the 199A pass-through deduction, the repeal of the death tax, and the preservation of energy tax credits such as 45Z and 45Q. Members advocated for solutions that balance fiscal responsibility with economic recovery, calling for swift action to deliver relief to hardworking Americans.

Participants

Transcript

Thank you.   Thank you.   Thank you.   Thank you.   Thank you.
Thank you.
The committee will come to order.  Good morning.  I want to welcome everyone to the first Ways and Means hearing with President Trump back in the White House.  The committee has been preparing itself for this moment for two years, and we are immediately getting to work to advance the agenda of the American people.  This member day hearing is a continuation of a member-driven process to get the right policies to the president's desk.   Last Congress, our member day had the most participation of any committee.  50% of the policies discussed at our last member day hearing went beyond this committee.  Policies like foster care reforms, border protection, and expanding educational choice for parents were all advanced after member day.  Today's hearing will have even more members testify than last year.  We also invited off-committee members to participate   in all 14 hearings we held outside of Washington in the 118th Congress, including those on the state of the American economy.  We are holding our member day hearing earlier than last Congress because speed is of the essence to deliver much needed relief to working families and to give small businesses the certainty   that their taxes will not be going up.  To deliver on President Trump's economic agenda, this committee needs to hear from the representatives from every corner of this great country.  During the first Trump administration, tax cuts ignited the largest economic boom of my lifetime, particularly for the middle-class families.  Taxpayers making less than $100,000 got a 16% tax cut, while the top 1%   paid a larger share of income taxes.  We doubled the child tax credit and the guaranteed deduction.  Families in the bottom 10% saw their incomes rise faster than wealthy families in the top 10%.
Unemployment and poverty both fell to the lowest levels ever recorded.   The economic boom of the first Trump presidency fueled by pro-growth policies grew federal revenues $1.6 trillion beyond what was even projected.  The bottom line, workers had more money in their pockets and businesses had more freedom and capital to grow and invest in their operation and employees.  The stakes are high if Congress does not act quickly.   to extend tax relief.  Capital will remain on the sidelines as businesses fear a 43 percent federal tax rate.  Good paying jobs will be lost while we risk further weakening our competitive edge against communist China.  Forty million parents will have their child tax credits slashed in half.  Two million family farms will see the death tax exemption slashed in half.   Ninety one percent of all taxpayers will see their guaranteed deduction slashed in half.  Twenty six million small businesses will be hit with a forty three point four percent top tax rate more than 20 points higher than what businesses pay in communist China.   People across the country know that we need to act and act fast.  Last week at the first policy hearing across the 119th Congress, an accountant testified before this committee that, quote, my phone is ringing off the hook, close quotes, with calls from farmers and small businesses worried about the future of their businesses.   These folks are the builders behind the economic boom the 2017 tax cuts ignited, and they are making decisions today, not months from now, but today, as to whether to open new facilities, hire new employees, and invest in their communities.  Families and small businesses, they need the certainty provided by permanent tax relief.
At the same time, there is more we can do and must do   to further unleash America's economic potential.  Whether it is greater incentives for investments in American manufacturing and jobs here at home, greater support for folks looking to start a family or grow a family, new tax relief to secure critical supply chains and combat China's harmful influence over our economy and national security.   Every single American will be affected by the policies that this committee will consider in the days, weeks, and months ahead.  So it is critical we hear from their representatives about their priorities.  To the people watching at home, know that your representatives in Congress are not shy about fighting for you.  I know   And I speak for members of this committee when I say that I look forward to hearing from my colleagues about their ideas to deliver timely economic relief to the American people this year.  I will now turn to ranking member Mr. Neal for the purposes of an opening statement.  Thanks, Chairman.

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