Rep. Tom Reed: We will get tax relief in 2017

This is a rush transcript from "Your World," November 23, 2017. This copy may not be in its final form and may be updated.

DAGEN MCDOWELL: We know President Trump was loving the House Republicans tax cut plan, but that won't matter if the Senate and House can't come together and agree. Can they get it done?

Let's ask New York Republican congressman and member of the House Ways and Means Committee, Tom Reed.

Can they get it done because the Senate, your brethren in the Senate, fouled up Obamacare repeal and replace, so what about these tax cuts?

REP. TOM REED, R-N.Y., HOUSE WAYS & MEANS COMMITTEE: I absolutely do believe we're going to get to the finish line here by the end of the year and have this on the president's desk so people can enjoy a big tax cut and tax relief starting in 2018 immediately.

MCDOWELL: Well, being from the state of New York, you gave a thumbs up, a yay to the Republican tax cut plan in the House, the tax reform plan, despite the largely it's a repeal of the state and local tax deduction. That is also in this on the Senate side. We've heard some pushback from likes of Susan Collins, the senator from Maine on that very thing.

Do you think that that largely stays in the plan that gets put together in conference?

REED: I think at a minimum that the compromise position we advocated for in the House and got included in the House GOP plan with the property tax deduction up to $10,000 will carry forward and I think you can only get improved with maybe potentially bringing in the income tax deduction as a component of it when we negotiate with the Senate for a completion of the bill, because you got members in California, Illinois elsewhere that are concerned about that portion of the loss of the state local tax deduction.

But bottom line, the property tax deduction I think is a minimum position that will continue forward.

MCDOWELL: Is there anything else in the Senate bill that would make you a no?

REED: Well, you know, there's obviously a lot to digest with the Senate bill, but I think the difference is between the House and Senate bill are things that we can bridge. I'm like hopeful, for example, that the medical expense deduction that the Senate is included, maybe find its way into the house bill, things like the new markets tax credit, historic tax credit are things I've advocated for in the House that we lost in the House GOP.

I'm looking forward to the Senate maybe bringing that to the table and including that in the final package.

But overall, if they completely repeal the state local tax deduction, I can't support that legislation and that's where that's a non-starter in the House in my opinion.

MCDOWELL: But try to explain this. I know that you have tried to explain it to your constituents. But it largely benefits corporations it is a big change on the corporate side and even for pass-through entities who file their taxes on their own individual on their own individual returns. But it is really kind of a giant, somewhat unappetizing casserole if you try to explain it to your -- to your average taxpayer in this country.

How can you do a better job of that because it -- because it does more on the corporate side than it does on the individual side quite frankly?

REED: Well, I may disagree with you on that I'm an individual side for example in my typical family making about $40,000 is our average salary in the district. They're going to see $1,600 of their own money kept in their pocket as a result of tax reform on the individual side.

That significant amount of money to hard-working folks back home that we represent and it's true on the corporate and business side, we do give significant reduction in relief to them but you got to remember, there the economic card, especially small business America. That's a special 9 percent rate that we do for small business pass-throughs, for example, that's Main Street business. That's not international business. That's mom-and-pop shops back home that we give that relief to.

They're the economic engine that are going to use that extra cash in my humble opinion as a prior small business owner to expand their employees, to build their product lines, build new service lines and expand their business.

MCDOWELL: But, Congressman, I've seen the headlines and I've heard the talking points come and coming out of the Democrats that the individual tax cuts expire. On the corporate side, they're permanent. I understand the reasoning behind that, but you've got the headlines that half of people, half of individuals' taxes are going to go up after 10 years. You've got to answer that.

REED: Yes, well, yes, that's why we in the House coupled the immediate expensing provision with the sunset, because we're dealing with the bean counters as you know. The bean counters restrict us, the rules of the Senate restrict that, but the --

(CROSSTALK)

MCDOWELL: Now, you just made enemies out of the accounting lobby. One, for the tax reform and calling them bean counters but continue.

REED: But no, those are the bean counters in D.C., and the Senate parliamentarians office that are causing this. Not the accountants back home.

But we sunset the individual expensing provision -- or the corporate business expensing and the individual rates do sunset, but I believe that cliff that we're looking at five years down the road is something none any sane elected official will allow us to have happen and we'll fix that as we go forward and make those permanent.

MCDOWELL: Real quick. Give me the odds that the Senate actually passes something before the end of the year.

REED: You know, I've said it before. I -- we're approaching 100 percent. I mean, they have to deliver. They know what tax reform represents to the average American back home, and that's big relief and that's money that they earned that they should be able to keep. And that to me is enough to drive this home.

MCDOWELL: Yes, you guys and gals over in the House are up for re-election in less than a year. Those senators -- most of them not so much.

But happy Thanksgiving, Congressman. Thanks so much for being here.

REED: Happy Thanksgiving to you.

MCDOWELL: Take care.  

Content and Programming Copyright 2017 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2017 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.