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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
-
My $1.2 million vacation home has a $360K mortgage. I don't need my upcoming $45K RMD. Should I use it to pay down the mortgage?We asked wealth planners for advice.
-
Four Strategies for Older Adults to Cut Property TaxesBefore you settle your next property tax bill, make sure you're taking full advantage of these tax breaks for older homeowners across the US.
-
Are New Trump $2,000 Stimulus Payments Coming in 2026? What to Know NowTax Policy A promise of $2,000 tariff dividend checks is raising questions and fueling confusion.
-
Could Tax Savings Make a 50-Year Mortgage Worth It?Buying a Home The 50-year mortgage proposal by Trump aims to address the housing affordability crisis with lower monthly mortgage payments. But what does that mean for your taxes?
-
Emergency Tax Bill Ends $6,000 Senior Deduction and Tip, Overtime Tax Breaks in D.C.Tax Law Here’s how state tax conformity rules could immediately raise your income tax liability.
-
Standard Deduction 2026 Amounts Are HereTax Breaks What is the standard deduction for your filing status in 2026?
-
Three Popular Tax Breaks Are Gone for Good in 2026Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. High-income earners could also get hit by a 'surprise' tax bill.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's FinancesTax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
Key 2025 Tax Changes for Parents in Trump's MegabillTax Changes Are you a parent? The so-called ‘One Big Beautiful Bill’ (OBBB) impacts several key tax incentives that can affect your family this year and beyond.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'Tax Deductions The GOP tax bill could make hidden homeowner costs worse for you. Here’s how.
