April 10, 2024
By Tom Reed
Having navigated the intricacies of tax legislation for 12 years on the House Ways and Means Committee, and participated intimately in the 2017 TCJA negotiations, I’ve learned the critical importance of the three Ps: Process, Politics, and Policy.
Here’s my take on the current deadlock:
Watching the continued roadblocks Sen. Ron Wyden (D-OR) and Rep. Jason Smith (R-Mo.) face in maneuvering their tax framework through Congress reminds me of my work to pass the 2017 tax cuts. Even the best policy ideas fail if we overlook Washington’s essential three Ps: Process, Politics, and Policy-in that order. No matter how sound your policy is, it’s irrelevant without navigating the process first and then aligning the politics.
This order of operations is on full display in the recent tax deadlock:
* On the Process side, government funding and the ongoing Speaker tensions have gummed up the legislative calendar.
* Political egos have been front and center in the tax debate, and by passing over emeritus Members in both chambers who have the clout and gravitas to move this bill, negotiators have only hurt their cause.
* Now, as the Hill braces for a new power structure post-election, Process and Political pressure move the likelihood of real action into the lame duck session this fall.
Navigating the maze of Process, Politics and Policy is more than a skill-it’s an art. It’s about finding the sweet spot where good ideas and practical politics meet a process calendar that works.
Looking ahead: our country faces the looming 2025 Tax Tsunami as the 2017 cuts expire. If Congress fails to grapple with these three Ps, the tax tsunami washing ashore after 2025 will devastate individuals’ bank accounts, manufacturers’ working capital, and corporations’ much needed capital investments to create the jobs of today and tomorrow.
