“This week, with a House floor vote and a Senate Finance Committee vote, members of Congress can prove their commitment to tax reform and take a leap forward in ensuring tax reform is soon signed into law.”
Passing tax reform will prove GOP is serious in its commitments to Americans
By Alex Hendrie
November 16, 2017
After years of campaigning in support of tax reform, Republicans in both the House and Senate can take a giant step forward this week to keep their promise to pass comprehensive tax reform.
While there are minor differences between the plans in the House and Senate, the broad objectives of tax reform are shared by both chambers. Both bills provide tax cuts for Americans of every income level and drastic simplification of the 70,000+ page tax code. They also provide a much-needed overhaul to the outdated tax code so that businesses large and small will again be able to compete against foreign competitors and create jobs across the country.
As confirmed by the Joint Committee on Taxation, both versions of the Tax Cuts and Jobs Act reduce taxes for everyone, with the greatest benefits going to middle income households.
Under the Senate plan for example, a family of four earning $73,000 would see a tax cut of nearly $1,500 — a reduction of 40 percent.
Clearly, there is a need for tax reform that grows the economy. The Tax Cuts and Jobs Act proposes a globally competitive 20 percent corporate rate as well as strong tax reductions for small businesses. The plans also call for five years of 100 percent immediate expensing for new investments, encouraging businesses to build and grow.
Not only will these reforms reduce the tax burden on businesses they will also lead to more jobs and higher wages for Americans across the country.
A study released by the Council of Economic Advisors found that in isolation a 20 percent corporate rate could result in household wages increasing by between $4,000 and $9,000 over the long term. More broadly, the nonpartisan Tax Foundation found that both the House and Senate bills would create almost one million new jobs, and increase incomes by three percent.
Read the full op-ed here.