In 1986, President Reagan signed into law the single largest tax reform in our nation’s history. Now—over three decades later—our tax code has once again become an excessive burden on middle-class families, Main Street job creators, and America’s economy.
Over the past several years, Members of the House Ways and Means Committee and Senate Finance Committee have developed and examined various proposals for tax reform, such as the “Better Way” Blueprint released in June 2016. Building from this work and the input of many American families, business leaders, and policy experts, we are confident that a shared vision for tax reform exists between the House, Senate, and the White House. Working together, we are moving forward now in developing legislation for the President to sign into law this year.
In 2017, we have a once-in-a-generation opportunity to enact bold, pro-growth tax reform that will create jobs, grow paychecks, and unleash American competitiveness. The American people are eager for comprehensive tax reform. We are dedicated to delivering real results.
The House, Senate, and the White House are on track to deliver permanent,
pro-growth tax reform this year that:
Grows Jobs & Paychecks Nationwide
- Bringing American jobs back home
- Lowering tax rates for businesses of all sizes
- Delivering historic tax relief to small businesses on Main Street
- Unleashing business investment
- Leveling the playing field for our works and businesses to compete and win
Makes the Tax Code
Fairer & Simpler
- Protecting more of Americans’ hard-earned paychecks from taxes
- Ending the nightmare of tax filing season with a form as simple as a postcard
- Killing the Death Tax
- Repealing the Alternative Minimum Tax
- Lowering tax rates and consolidating tax brackets
- Closing loopholes and ending the max of special interest tax breaks
- Preserving and simplifying family-focuses provisions
- Encouraging savings and investment
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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
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.”