Rep. Kelly Praises Introduction of Unified Framework for Tax Reform

Sep 27, 2017 Issues: Economy and Jobs, Tax Reform

Plan increases take-home pay for middle-income families, lowers rates to allow US companies to compete globally

WASHINGTON — U.S. Representative Mike Kelly (R-PA) – a member of the House Ways and Means Committee – issued the following statement today regarding the unveiling of the unified framework for “pro-American, fiscally-responsible tax reform” by the Ways and Means Committee, the Senate Finance Committee, and the Trump administration.

“Today is a day to celebrate. With this framework, pro-growth tax reform is no longer just a lofty ambition but a concrete plan that is closer to realization than at any point in over three decades. This is a total win for America in every measurable way. For hardworking families and individuals, this means more take-home pay. For American companies, it means no longer having to pay the world’s highest tax rate but, instead, being able to create new jobs, increase wages, and compete globally on a level playing field. For everyone, it means a much stronger American economy supported by a fairer, simpler, more understandable tax code.

“This is an economic growth plan. This is a jobs plan. This is a relief plan for hardworking Americans who are tired of forfeiting too much of their hard-earned paycheck to the government. The foundation of this framework is the mandate delivered loudly by the American people last year. They are sick and tired of a government that overtaxes them and an economy that underperforms for them. I hear it everywhere I travel throughout Western Pennsylvania. They want lower taxes, bigger paychecks, and more job opportunities in their communities. This historic tax cut plan is an answer to their rightful demands.

“I strongly commend President Trump for his leadership in this fight. As a fellow private sector businessman, he knows what so many Americans have long sensed: that our economy is falling behind, not because our people are working less hard – far from it – but because Washington is letting others take advantage of us. He knows we simply cannot dominate the global market by taxing our businesses more than anywhere else around the globe. This senseless assault on our own economy, on our own workers and families, will soon come to an end. By cutting and simplifying taxes for both workers and businesses, Americans will finally have more money and time back in their hands.”

NOTE: The full text of the Unified Tax Reform Framework can be read here. A one-page summary of the framework can be read here.

FRAMEWORK HIGHLIGHTS:

Lowers Rates for Individuals and Families
The framework shrinks the current seven tax brackets into three – 12%, 25% and 35% – with the potential for an additional top rate for the highest-income taxpayers to ensure that the wealthy do not contribute a lower share of taxes paid than they do today.

Doubles the Standard Deduction and Enhances the Child Tax Credit
The framework roughly doubles the standard deduction so that typical middle-class families will keep more of their paycheck. It also significantly increases the Child Tax Credit.

Eliminates Loopholes for the Wealthy, Protects Bedrock Provisions for Middle Class
To provide simplicity and fairness the framework eliminates many itemized deductions that are primarily used by the wealthy, but retains tax incentives for home mortgage interest and charitable contributions, as well as tax incentives for work, higher education, and retirement security.

Repeals the Death Tax and Alternative Minimum Tax (AMT)
The framework repeals the unfair Death Tax and substantially simplifies the tax code by repealing the existing individual AMT, which requires taxpayers to do their taxes twice.

Creates a New Lower Tax Rate and Structure for Small Businesses
The framework limits the maximum tax rate for small and family-owned businesses to 25% - significantly lower than the top rate that these businesses pay today.

To Create Jobs and Promote Competitiveness, Lowers the Corporate Tax Rate
So that America can compete on level playing field, the framework reduces the corporate tax rate to 20% – below the 22.5% average of the industrialized world.

To Boost the Economy, Allows “Expensing” of Capital Investments
The framework allows, for at least five years, businesses to immediately write off (or “expense”) the cost of new investments, giving a much-needed lift to the economy.

Moves to an American Model for Competitiveness
The framework ends the perverse incentive to offshore jobs and keep foreign profits overseas.  It levels the playing field for American companies and workers.

Brings Profits Back Home 
The framework brings home profits by imposing a one-time, low tax rate on wealth that has already accumulated overseas so there is no tax incentive to keeping the money offshore.

Rep. Kelly joined other members of the Ways & Means Committee at the White House yesterday to personally discuss the details of the unified framework with President Trump

[Photo courtesy of the White House]

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