Making Pro-Growth Tax Reform a Reality
By Congressman Kevin Brady, Chairman of the U.S. House Ways and Means Committee
As Teresa Meares, NAWBO National Board Chair, wrote to me last month: “We see firsthand within our membership the need for comprehensive tax reform and are confident our economy would reap the benefits of such reform.” I could not agree more.
Working with President Trump, House Republicans are committed to making pro-growth tax reform a reality in 2017. Right now, we are pushing forward aggressively to turn the ideas of our “Better Way” Blueprint into tax reform legislation we can enact this year.
Our Blueprint is focused on three crucial goals: Growing America’s economy, simplifying the code and delivering a service-first IRS. Here’s what this means for American businesses, families and communities.
Rather than the burdensome, complex and outdated tax code we have today, our nation needs a tax code that is built for growth—the growth of wages, jobs and America’s economy. And that’s exactly what our Blueprint delivers.
In fact, the independent Tax Foundation estimates that our proposal will grow America’s economy by more than 9% over the next 10 years, raise wages by nearly 8% and spur the creation of nearly 2 million full-time jobs.
The pro-growth features of our proposal include:
Delivering the lowest rates in modern history for American businesses
- Small businesses will have a separate, low rate of no more than 25% instead of being taxed at individual rates as high as 44.6%
- For America’s large businesses, we lower the corporate tax rate from 35%—currently the highest in the developed world—down to a flat 20%, helping you compete worldwide and create jobs here at home
Unleashing investment in our communities
- Allowing all U.S. businesses to immediately write off the full cost of capital investments in equipment, technology, machinery and buildings needed to produce and compete at a higher level
- Cutting in half the tax rates on personal savings and investment to help Americans invest in their local economies and build toward a more financially secure future for themselves and their families
- Permanently repealing the “Death Tax” so family-owned businesses can be passed down to the next generation without facing a potentially devastating tax bill
Enhancing America’s global competitiveness
- Moving America to a modern international tax system that encourages global U.S. businesses to bring home foreign earnings to reinvest in our communities
- Ending the “Made in America” tax on U.S. exports and no longer taxing the sale of American-made products abroad
- Promoting true competition in America by taxing all products sold in the United States at a low, equal rate—regardless of where the product is made
Today, our tax code is so complex that 9 out of 10 Americans have to hire a professional tax preparer or purchase software just to file their taxes each year. Under our Blueprint, the tax code will be so fair and straightforward that 9 out of 10 Americans will be able to file on a form as simple as a postcard:
Our Blueprint brings an end to the nightmare of tax season by:
- Eliminating the confusing maze of special interest deductions that 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 the vast majority of taxpayers don’t have to deal with the hassle of itemizing
- Preserving and simplifying family-focused provisions that support homeownership, higher education, children and charitable giving
- Eliminating the Alternative Minimum Tax (AMT) for both families and job creators so you no longer have to calculate your taxes twice every year
House Republicans know that a fairer, simpler tax code also demands a fairer, simpler tax collector. For this reason, our Blueprint redesigns the IRS into an agency with a singular mission—taxpayer service.
Under our proposal, the IRS will be centered around three distinct service units, each staffed and trained to provide top-quality support to different groups of taxpayers:
- One unit will be dedicated to helping individuals and families with their tax questions
- One unit will focus on serving the needs of businesses large and small
- And a third, independent unit, will function similar to a small claims court where taxpayers can find quick resolution to minor tax disputes
We Need Your Help
This year, we have a once-in-a-generation opportunity to make bold, pro-growth tax reform a reality. And, to help ensure we see success in this vital effort, I’d like to ask all of you to be our partners.
As owners of businesses of all sizes and from all sectors of our economy, NAWBO members are leaders in your local communities. Your leadership, vision and expertise will be critically important as we move forward on tax reform.
If you want a tax code focused on growth, simplicity and service—one that truly appreciates all of the time and effort it takes to build a successful business in America—please make your voices heard. We want to hear your feedback and concerns, and we are committed to working with you and the business community to get the details right.
With your support and active engagement, I know we can seize this once-in-a-generation opportunity and deliver a 21st century tax code that helps Americans of all walks of life.
More from this issue
- Griselda Quezada-Chavez Goes Global with Q&C Exim
- Q&A With Loreen Gilbert, NAWBO National Board Member
- She Said/She Said: Changing Tax Laws and Tax Reform
- The 2017 Tax Law Changes You Can’t Miss
- Iowa’s Lieutenant Governor Kim Reynolds Talks Women in Public Service and Business
- It’s Never Too Early to Start Thinking “Taxes”
- Microsoft Wants to Know Your “No Small Thing”
- Consider Tax Incentives With Your Next Capital or Workforce Investment
- What Would You Do With More Money?
- Determine Your Best Path to Public Service