Senate Finance Committee Chairman Orrin Hatch (R-Utah), House Ways and Means Committee Chairman Kevin Brady (R-Texas), and Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) announced a bipartisan, bicameral deal on legislation to provide permanent tax relief for hard-working American families, college students, charities, small business and enterprises on the forefront of innovation.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 is a culmination of recent work done in both chambers of Congress and renews and makes permanent important tax incentives that support both individuals and job creators.
“This important achievement demonstrates what happens when Congress works for the American people,” said Hatch. “After years of short-term extensions, good faith bipartisan compromise prevailed. The result? A strong common-sense deal that puts in place permanent and responsible tax relief to help businesses, families and individuals keep more of their hard-earned dollars and promotes greater economic growth here at home. This bill also protects job creators by suspending one of Obamacare’s most egregious taxes. By providing permanency and certainty in the tax code, this bipartisan bill sets the stage for a comprehensive tax overhaul that will provide bigger paychecks, better jobs, and more opportunity for the American people.”
“It makes absolutely no sense the way America handles its tax code,” said Brady. “How can families and local businesses count on tax relief each year as long as Congress can’t decide what’s permanent and what’s not? That confusion ends now, and our economy will be stronger for it. By delivering permanent tax relief, we’re making it easier for Americans to keep more of their own money, find new jobs, and increase their wages. Businesses will also be able to invest with confidence in new equipment, research and jobs to grow the local economy. This bill is an important piece of our plan to replace our broken tax code with a simpler, fairer systemthat actually works for the American people. By passing this bill now, Congress will have the freedom in the New Year to move forward with comprehensive tax reform that grows our economy.”
“This bill highlights clear priorities for reforming our tax system,” said Wyden. “What does that mean? Millions of working families with children will not find themselves suddenly taxed into poverty. Millions of college students won’t have the rug pulled out from under them when the tuition bill arrives. Charities can confidently plan and expand the good work they do. And small business and enterprises on the forefront of innovation now have the economic certainty they deserve. At the same time we are phasing out provisions like bonus depreciation which were always designed to be temporary. But now is not the time for Congress to slow down and pat itself on the back. Today is a down payment on tax reform and our work continues as we strive towards a complete overhaul of our broken tax system.”
The Senate Finance and House Ways and Means Committees, which have jurisdiction over the American tax system, have spearheaded efforts in Congress to overhaul the nation’s broken tax code. Through working groups, hearings, roundtables, issue papers and markups, lawmakers have examined ways to make the U.S. tax code simpler, fairer, and more efficient.
Earlier this year, the Senate Finance Committee reported out a bipartisan tax extenders package that extended provisions to assist families, individuals and small businesses for two years. The House Ways and Means Committee advanced several tax bills that would make permanent a number of policies, like incentives for innovative research and development, among others.
The PATH Act includes a number of bipartisan legislative policies that were advanced by the two tax writing committees through open process and debate.
Additionally, the legislation suspends the 2.3 percent excise tax on medical devices through 2017.
To view a copy of the bill text click here.
A section-by-section summary of the legislation can be found here.