House Ways And Means Committee Press Release Outlines The Proposal Of House Republicans

For the information of our members, and per your request, I have reproduced a copy of a House Ways and Means Committee press release that outlines the proposal of the House Republicans in some detail in TaxConnections Tax Blogs.  At this point in time, I don’t know how many Republican Members of Ways and Means and/or of the House will support that proposal until details of the President’s tax proposal is announced and studied.

However, I should point out that in a speech very recently, the Chairman of the House Ways and Means Committee endorsed the adoption of a border adjustment tax to level the playing field with foreign based company products coming into the United States.  It could be a contentious issue in the debate.

In any event, I am confident that President Trump, Speaker Ryan, and Republican Members of the House will agree on a bill that will be most beneficial for taxpayers in lowering their tax burden, creating economy growth, creating jobs, reducing paperwork, and reducing the complexity of our tax code.  And that they will do so in a timely matter.

The following is a verbatim copy of the press release from the House Ways and Means Committee.

A Better Way for Tax Reform
Our Principle
In a Confident America, the tax code and the IRS work for us, not against us.

Our Challenge
Our tax code is a mess, and that’s putting it lightly. Multiple brackets. High rates. Special interest breaks everywhere. Rules
and regulations that are too complicated to understand. It costs more and more each year just to do your taxes, let alone
pay them. All of this drags people down and leaves businesses buried in paperwork and compliance problems. So instead of
promoting growth, our tax code is pushing jobs overseas. And the agency charged with overseeing all of this—the IRS—has
repeatedly violated the trust of the American taxpayer.

Our Vision
We need a new tax code. It needs to be fair and simple for everyone. It should be so simple that most Americans can do
their taxes on a form as simple as a postcard. Our tax code should be built for growth. It should help make the United
States the best place in the world to hire and invest. And if we’re going to have a better tax code, we need a better IRS, one
that puts the taxpayers first.
This blueprint offers a better way to dramatic reform—without increasing the deficit. It does so by promoting growth—of
American jobs, wages, and ultimately the entire economy.

Simplicity And Fairness
Our plan makes the tax code simpler, fairer, and flatter, so that it’s not only easier to do your taxes, but it’s also easier to
have peace of mind at critical moments, whether it’s going to school, getting a job, raising a family, or planning for retirement.
• Save time and money by making it so that most Americans can do their taxes on a form as simple as a postcard.
• Consolidate the system down to three tax brackets, and lower the top individual income tax rate to 33 percent.
• Simplify tax filing for families by creating a larger standard deduction and a larger child and dependent tax credit.
• Make it easier to pay for college by streamlining the maze of education tax benefits.
• Eliminate the alternative minimum tax so you don’t have to do your taxes twice a year.
• Reward work by improving the EITC.
• Encourage charitable giving by providing a real tax incentive.
• Help families plan for retirement by reforming savings provisions.
• Stop overtaxing “Made in America” products so that our manufacturers can compete.
• Repeal the death tax so that the loss of a family member will no longer be taxable.

Our Ideas
• Simplicity and fairness. Our plan makes the tax code simpler, fairer, and flatter, so that it’s not only easier to do your
taxes, but it’s also easier to have peace of mind at critical moments in life.
• Jobs and growth. Our plan makes it easier to create jobs, raise wages, and expand opportunity for all Americans.
• A service first IRS. Our plan matches a simpler, fairer tax code with a simpler, fairer IRS that puts taxpayers first.

Jobs And Growth
Our plan will make it easier to create jobs, raise wages, and expand opportunity for all Americans.
• Cut taxes on small businesses by creating a separate, low tax rate of 25 percent for many on Main Street.
• Cut taxes on savings and investment by allowing families and individuals to deduct 50 percent of the dividends, capital
gains, and interest received from stocks and mutual funds.
• Provide a tax-free return on new investment by allowing, for the first time ever, full and immediate write-offs.
• Restore American competitiveness by lowering our corporate tax rate from the highest in the industrialized world to 20
percent and shifting to a “territorial” system with more competitive rates.
• Create more certainty by eliminating the death tax, which can take up to 40 percent of a family business’s assets if the
owner passes away.

A Service First IRS
A simpler, fairer tax code will require a simpler, fairer IRS with one mission: Put the taxpayers first.
• Restructure the IRS around three major units: one for individuals and families, one for businesses of all sizes, and one
that provides an independent “small claims court” approach to resolving routine disputes quickly.
• Install a new commissioner, subject to term limits, who will be required to administer the new tax code with fairness and
keep the politics out of the IRS.
• Cut down on IRS intimidation by creating an Office of Dispute Resolution to serve as an independent arbiter to protect
your rights and resolve disputes in a timely manner.
• Clear out the bureaucracy by doing away with all the rules, regulations, forms, and instructions that won’t be needed
with a simpler, fairer tax code.
• Modernize information systems so that taxpayers have access to the resources they need when they need them—all
while protecting privacy.

Refer To Ask Tax Questions

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