Will 'a better way' for a confident America lead to tax reform?

• Author: Lewis, Troy K.

Words have meaning. However, some words can have multiple meanings. For instance, the term blueprint has two distinct meanings: one, a detailed plan for a building or a machine that historically was printed with white lines on a blue background; and two, a complete plan or vision that demonstrates broadly how something is to be developed or performed. The definitions, while similar, differ in scope. From a Washington, D.C., perspective, when the term blueprint is used by Congress, it seldom refers to detailed plans, but rather it is almost exclusively used to define a set of principles and ideas that provide direction for future legislation while omitting the underlying details.

It is well-settled that, in a political setting, visioning is far safer than mapping out a detailed strategy. Detailed plans require lines to be drawn in the political sand that can attract political allies on the one hand and alienate political foes on the other. The drafters know this and deserve credit for putting forth fairly provocative concepts in the "Blueprint" that will no doubt create great debate and take a political toll.

However, to be fair, Congress historically has tended to be much more efficient in the eventual passage of legislation by gathering consensus about ideas upfront rather than waiting to do so when the underlying details have been completed.

All else being equal, Congress prefers to measure twice and cut once in terms of political effort when it comes to granular details of a tax bill. Obtaining conceptual buy-in upfront and filling in the details later often is most effective. Tax reform efforts in the 114th Congress have followed this well-prescribed model.

The Blueprint

On June 24, 2016, Ways and Means Committee Chairman Kevin Brady, R-Texas, issued the final document in a series of vision statements by House Republicans titled A Better Way: Our Vision for a Confident America (available at abetterway.speaker.gov). This 35-page tax plan, which is self-described as a "Blueprint," promises to "deliver a better way on tax reform that will help all Americans have more and better opportunities in their lives." This Blueprint document was drafted by a task force composed of members of Congress and their staff. In fact, the House established six similar task forces each with a unique stated objective to construct a bold, pro-growth agenda that could be followed, dealing with six key areas including national security, health care reform, and tax reform.

The congressional Blueprint is primarily a tax reform conceptual vision document that does contain some limited specific tax reform measures used for illustration purposes. The Blueprint is designed and...