When it comes to setting tax policy, does it really matter who the chairman of the House Ways and Means Committee is? Yes and no. No, because House Speaker Nancy Pelosi (D-CA) exerts pretty tight control over her committee chairmen. But also yes, because the new tax chairman, Rep. Sander Levin (D-MI) will insist on making his mark during what could be a short tenure.
Levin took over the panel in early March after Rep. Charles Rangel (D-NY) stepped aside amid a series of ethics problems. At the time, the conventional wisdom was that Rangel’s departure wouldn’t make much difference in terms of what came out of the committee. After all, Pelosi had been calling the shots on tax issues for some time, and there was no reason to believe she would stop. Rangel’s influence had waned during his time as chairman, largely because of those ethics problems.
True, Pelosi hasn’t lost any of her power, and she even bolstered her standing with a victory in pushing health care reform through the House. And there is speculation that the 78-year-old Levin may end up stepping aside in the next year or so, so that a younger member of the committee, such as Rep. Richard Neal (D-MA), could take the reins. But don’t assume Levin will behave like a mere caretaker. He has his own priorities on tax policy, and he’s likely to take a different path than Rangel did. And he won’t be distracted by problems on the ethics front. What does this mean for business? Plenty.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For example, although Rangel is a liberal Democrat, as a New Yorker he’s also a friend of big business and of Wall Street, which is why one of the issues he championed as chairman was a deep cut in the 35% top corporate tax rate. Rangel saw this proposal as the cornerstone of a bigger tax reform effort. It’s safe to say that a corporate tax cut won’t be a top issue for Levin. He’s sure to be more concerned about tax measures to revive struggling industries in his home state of Michigan, to keep jobs from going overseas and to rein in multinational firms.
Those matters aside, Levin has a tough load of weighty issues ahead of him and not much time to ruminate on them: He has to steer estate tax reform legislation through the committee this year and figure out what to do with the Bush tax cuts before they expire on Dec. 31. So Levin will show what kind of Ways and Means chairman he is in short order.
-
What Is a Qualified Charitable Distribution (QCD)?Tax Breaks A QCD can lower your tax bill while meeting your charitable giving goals in retirement. Here’s how.
-
Embracing Generative AI for Financial SuccessGenerative AI has the potential to reshape how we approach learning about and managing our personal finances.
-
Can Tariffs Make Childcare More Affordable?Tariffs President-elect Trump suggested tariffs can address the childcare crisis, but economists are doubtful.
-
Election 2024 Childcare Debate: Harris-Walz vs. Trump-Vance PlansElection As Election Day approaches, the Republican and Democratic tickets present different ideas for childcare and family tax credits. Here's what to know.
-
What Is the Tax Cuts and Jobs Act (TCJA)?Tax Law Everything you need to know about the TCJA and key tax credits and deductions currently set to expire at the end of 2025.
-
Will EVs Drive the Vote in Election 2024 Swing States?Tax Credits Electric vehicle tax credits have somehow become controversial. So car buyer attitudes in swing states might make a difference.
-
SALT Deduction: Three Things to KnowTax Deductions Changes to the state and local tax deduction and the looming TCJA expiration have brought this tax break into the spotlight.
-
IRS Skirts TikTok Ban to Sniff Out Tax ScammersTax Scams Social media scams caused thousands to file inaccurate returns. What does that have to do with TikTok?
-
Will the Election Impact the EV Tax Credit?Tax Credits It’s no secret electric vehicles have become a bit of a political issue. But what does that mean for your EV tax break?
-
Kamala Harris Calls for 28% Capital Gains Tax, Diverging from Higher Biden RateCapital Gains Capital gains tax rates are an important issue for some voters in the upcoming November election.
