CQ Press Lecture Spark December 30, 2017

Tax Cuts and Jobs Act President Trump’s remarks on signing the Tax Cuts and Jobs Act into law: https://www.realclearpolitics.com/video/2017/12/22/president_trump_signs_tax_cut_bill_into_law.h tml What will the impact of the new law be for your family’s budget and for the economy? Pro: House Speaker Paul Ryan (R-WI) says the tax plan “will increase economic growth” http://www.cnn.com/2017/12/20/politics/house-speaker-paul-ryan-tax-reaction- morning-shows/index.html Con: Senator Bernie Sanders (I-VT) says the tax reform act will ”make a bad situation worse” https://www.politico.com/story/2017/12/24/bernie-sanders-tax-overhaul- trump-319040 Other voices in the debate: Chris Cillizza of CNN on why Republicans may regret passing the Tax Cuts and Jobs Act: http://www.cnn.com/2017/12/19/politics/tax-plan-poll-analysis/index.html Chuck DeVore of Fox News on why the tax reform will lead to an economic boom: http://www.foxnews.com/opinion/2017/12/22/trumps-tax-bill-and-regulatory-reform-will-spark-economic-boom-benefitting-all-americans.html This Wall Street Journal Editorial weighs the pros and cons of the bill.

Key Concept Tax reform and congressional policymaking The last major tax reform act was the 1986 Tax Reform Act The 1986 Act passed after 30 hearings in the House and 36 in the Senate during a two year process. The 2017 Tax Cuts and Job Act passed the House two weeks after its introduction and with no hearings Rarely does major legislation pass the Congress with few, if any, hearings. The Tax Reform and Jobs Act presents a challenge for our understanding of congressional process and deliberation. This piece in Forbes encouraged lawmakers to slow down the process of enactment: https://www.forbes.com/sites/beltway/2017/11/28/what-would-reagan-do/#3bbd09ca739e In this ABC News piece, Republican leaders defend the process they employed, noting that they have been having hearings on tax reform since they retook control of Congress in 2011. http://abcnews.go.com/Politics/republicans-defend-tax-bill-process-transparent-similar-complaints/story?id=51627463

Assessment Writing: Should corporate taxes be lowered? Why or why not? Debate: If Congress has debated tax reform in the past, it does not need to hold many hearings on a specific bill. Poll: Agree or disagree--Tax cuts for corporations and wealthy individuals generally produce significant economic gains for the poor and middle class. Short Answer: Why is it important for Congress to hold hearings on major pieces of legislation? Current events quiz: The 1986 Tax Reform Act was one of __________ most important bipartisan achievements: Ronald Reagan Bill Clinton George H.W. Bush Barack Obama 2. T/F: Congress passed the 2017 Tax Reform and Jobs Act after two years of hearings and deliberation. 3. T/F: President Donald Trump did not campaign on changes to the tax code and was reluctant to have Congress pass a bill before Christmas. 4. Republicans generally believe the following: Lower tax rates for individuals and corporations generates economic growth Higher tax rates for wealthy individuals generates economic growth Lower tax rates create unsustainable deficits Higher tax rates are necessary to reduce inequality T/F: Speaker Paul Ryan has been focused on tax reform for his entire congressional career Answer: A False True