Kevin Brady, Chair, House Ways & Means Committee, has released a summary of Republican Tax Reform Proposals. The summary appears below:
In his Joint Address this week, President Trump called for bold tax reform that will allow our country to “compete and thrive anywhere and with anyone.” That’s why House Republicans are going bold on tax reform in 2017.
With our “built-for-growth” tax reform Blueprint, we’re proposing historic solutions that work together to unleash U.S. economic growth and provide unprecedented simplicity and fairness for all taxpayers. Here’s how:
Rather than the burdensome, complex, and outdated tax code we have today, America needs a tax code built for growth – the growth of families’ wages, the growth of our local businesses, and the growth of our economy as a whole. Our Blueprint takes historic action to grow our economy, support job creation, and enhance American competitiveness by:
- Dramatically reducing tax rates for American job creators of all sizes so they can invest more in their businesses, their workers, and their futures
- Unleashing business investment by allowing all American businesses to immediately write off the full costs of the new equipment, machinery, buildings, or technology needed to compete and produce at a higher level
- Cutting in half the tax rates on personal savings and investment so that Americans can invest in their local economies and build toward a more financially secure future for themselves and their families
- Moving America to a 21st century international tax system that does not prevent global U.S. businesses from bringing home foreign earnings to reinvest in creating new America jobs
- Ending the “Made in America” tax to level the playing field for our businesses and workers, enhance America’s competitiveness around the world, and spur job creation here at home
Today, American families spend countless hours and dollars each year just to file their taxes. Under our Blueprint, all of that will change. We take action to simplify the code so dramatically that 9 out of 10 Americans will be able to file their taxes on a form as simple as a postcard. This is achieved by:
- Eliminating the confusing maze of special interest deductions that add complexity for families and keep rates artificially high for all taxpayers
- Lowering tax rates across the board for individuals and families and reducing the number of tax brackets from seven to three
- Increasing the standard deduction so that the vast majority of taxpayers don’t have to deal with the hassle of itemizing
- Preserving and simplifying important provisions that support families, including those that help Americans buy a home, send their kids to college, and donate to their local church or charity
- Permanently repealing the Death Tax so that family-owned farms and businesses can be passed down to the next generation without facing a potentially devastating tax bill
From targeting Americans for their political beliefs to unlawfully seizing the assets of law-abiding small business owners, the IRS in recent years has proven that a complex tax code leaves the door wide open for unaccountable bureaucrats to abuse the rights of taxpayers. That’s why, on top of delivering a simpler and fairer tax code, our Blueprint takes action to provide all taxpayers with a simpler and fairer tax collector. We propose to:
- Bust up the IRS as Americans know it today and transform it into an agency with a singular mission – Service First
- Redesign the IRS around distinct service units that will be staffed and trained to provide top-quality support to individuals, families, and businesses
- Place new checks on the authority of the IRS Commissioner to ensure that the tax code is administered fairly, objectively, and always with the utmost respect for the rights of American taxpayers
As you can see, House Republicans are not limiting our approach on tax reform to fixing just one provision or another. We are moving forward aggressively with a bold and historic overhaul that transforms the tax code from top to bottom. With these solutions – and numerous others – we will make tax reform a reality in 2017.
CLICK HERE to learn more about the features of our built-for-growth tax reform Blueprint.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.