In 1986, President Reagan signed into law the single largest tax reform in our nation’s history. Now—over 30 years later—Americans recognize that our current tax code is beyond repair.
In June 2016, Ways and Means Republicans led the effort to unveil a “Better Way for Tax Reform.” This bold Blueprint delivers a 21st century tax code built for growth – the growth of families’ paychecks, the growth of American businesses, and the growth of our nation’s economy.
It’s clear that simply tinkering with our broken tax code won’t fix these problems. Today, we have a once-in-a-generation opportunity to move forward with bold, pro-growth tax reform to create jobs, grow wages, and vault America back into the lead.
Wage & Job Growth
Our proposal takes historic action to grow wages, jobs, and America’s economy.
Simplicity & Fairness
Our proposal delivers a tax code so straightforward that 9 out of 10 Americans will be able to file their taxes on a form as simple as a postcard.
Our proposal busts up the IRS and redesigns it into an agency with a singular mission – taxpayer service.
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What Our Plan Does
Eliminates the maze of unfair special interest loopholes that keep rates artificially high for everyone.
Increases the standard deduction so the vast majority of taxpayers don’t have to deal with the complexity of itemizing.
Separates wage income from small business income for the first time in history so that small businesses are no longer taxed under the individual side of the code at rates as high as 44.6%.
Ends the Death Tax so family-owned farms and businesses can be passed down to the next generation without facing a potentially devastating tax bill.
Source: Tax Foundation
“When we account for the effects of the Better Way tax plan on productivity, wages, and economic growth, a family earning $55,000 will see their [long-run] after-tax incomes rise by $4,672.”
Tax Foundation Analysis
Simple, Fair “Postcard” Filing
Today, American families spend countless hours and dollars each year just to file their taxes. Under our tax reform plan, 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
Ending the “Made in America” Tax
Under America’s current broken tax code, foreign products have an advantage over American-made products. House Republicans have a tax reform plan to level the global playing field, get our economy moving again, and simplify our tax code. Our plan ends the “Made in America” tax — setting our manufacturers up for success around the world.
Our current tax code imposes the highest corporate tax rate in the industrialized world on American job creators, discourages American businesses from bringing home their foreign earnings, and favors foreign workers and businesses over American workers and business.
What They Are Saying About Pro-Growth Tax Reform
“Comprehensive tax reform represents the single greatest opportunity to remedy [our nation’s economic] shortcomings and accelerate growth in the near term and the long run.”
“Tax reform has the potential to have an enormously positive impact on small businesses; it is their top priority in 2017… the U.S. economy will not reach its full potential for growth without a robust and flourishing small business sector.”
“Farm Bureau commends the Committee on Ways and Means for moving forward with comprehensive tax reform designed to spur growth of our nation’s economy. Many of the provisions of the tax reform blueprint will be beneficial to farmers, including reduced income tax rates, reduced capital gains taxes, immediate expensing for all business inputs except land, and the elimination of the estate tax.”
“Tax reform is the only way to reverse these trends and enact policies that benefit the economy. Pro-growth reform should reduce taxes on businesses to a globally competitive rate, reduce taxes on capital gains, and eliminate the death tax and gift tax.”
“Business Roundtable CEOs strongly support tax reform as the most powerful tool available to policymakers to foster greater economic growth, job creation and higher wages”
“By transforming our outdated tax code, Congress and the White House can accelerate economic growth by encouraging more business investment and boosting job growth.”
“By making America’s corporate tax rate more competitive, America will see an economic boom. We believe that only by growing the economy can we make progress on paying down our national debt, get more Americans back to work, and give the American people peace of mind that this country will be better tomorrow than it is today.”
“FreedomWorks and our community of activists hope that Congress will begin to move on fundamental tax reform in the coming weeks. After eight years of economically crippling policies, the 115th Congress has been presented with a generational moment to restore prosperity and opportunity for all Americans and achieve sustaining economic growth.”