Congressman Vern Buchanan, Vice Chairman of the House Ways and Means Committee, discussed the early effects of recent tax reforms during a committee hearing with Internal Revenue Service Chief Executive Officer Frank J. Bisignano. The hearing addressed how Republican-led tax changes are impacting workers, seniors, small businesses, and IRS operations.
Buchanan focused on policies such as full expensing and the Section 199A small business deduction. He also pointed to new provisions like his “No Tax on Tips” proposal, the removal of taxes on overtime pay, and reduced taxes on Social Security benefits for some seniors.
He highlighted the role of small businesses in job creation: “We have similar backgrounds in a sense. I was in business for 30 years, but I also chaired the Florida Chamber [of Commerce]. We had 130,000 businesses that were in that chamber. Part of my job was to try to work with a lot of mid-size and small companies. That’s always been my focus coming up here. People said why are you so focused that way? I said because they’re the job creators.
“Most of those 130,000 businesses weren’t big companies. There were quite a few that were. Most of them—93 percent—were pass-through entities. That’s why I’m so excited about what we’ve got done on the tax front, and I know you feel the same way … I’m excited about the idea of full expensing, it’s a powerful tool, whether you’re buying or selling. Also, 199A is another powerful tool where you get some parity with corporate America in terms of a reduction of 20 percent.”
Discussing feedback from constituents regarding tax relief measures for workers and retirees, Buchanan stated: “What I’m hearing back home in Florida is they’re very excited about no tax on tips, no tax on overtime, minimal tax on Social Security … Give me your thoughts … in terms of where that’s at. I know you’ve hired quite a few people, but the big thing is, they want to make sure they get their benefits.”
Bisignano responded: “Well, daily, myself—as I have my whole career—and the Treasury Secretary review the stats of the IRS and our most important stat is serving the American public, both what comes in and how quick it goes out, and you heard me talk about building new technology so items that took 16 weeks like a mandatory return are down to 1 week. I applaud your passion for small business. Through my career, I was with the largest technology provider to small businesses across Americaand I understand, to me it’s the lifeblood of America, right? And many small businesses are owned by an entrepreneur that, in fact, really is a risk taker because they’re risking their whole family’s income on their ability to operate. Our ability to deliver for them is so darn important.”
Buchanan added: “Let me just add to it … My wife’s here today. We started a company together, two of us, and it ended up being a billion dollars. So that’s the America that I believe in, that anything’s possible.”
On improving interactions between taxpayers or business owners and the IRS regarding lengthy disputes or challenges with agency processes—sometimes lasting years—Buchanan asked how these could be resolved faster: “One of the questions I get a lot is, in terms of dealing with the IRS… What can we do to expedite or help push to expedite that so people can get back on their feet quicker…”
Bisignano described efforts at organizational reform: “I like to talk about the governance model…that we’re running…the IRS under…to ensure we’re delivering…Once a week…we look at…the key operating indicators…And we now implement aging…How old is the oldest item? We talk about beating whatever best record ever had…and then beating it again…I talked about…the weekly risk meeting…and we look at every item we procure for over $300K…it’s a governance model designed to serve…the American public…Most indicators are about how are we serving…the American public…I look at them daily…and so does…the Treasury Secretary.”
Vern Buchanan has represented Florida’s 16th congressional district since replacing Katherine Harris in 2007 (https://www.congress.gov/member/vern-buchanan/B001260). He previously served in Florida’s state legislature before joining Congress (https://bioguide.congress.gov/search/bio/B001260). Born in Detroit in 1951 (https://www.house.gov/representatives), he currently resides in Sarasota (https://buchanan.house.gov/about/biography.htm) and holds degrees from Cleary University and University of Detroit Mercy.
