WASHINGTON – House Ways and Means Committee Chairman Kevin Brady (R-Texas) said the new Republican tax reform plan would make filing income taxes as easy as ordering a pizza with a smartphone for 9 out of 10 American taxpayers.
“Ultimately, this delivers a tax code so fair and so straightforward that 9 out of 10 Americans will be able to file your taxes on a form as simple as a postcard – or even as easy as ordering a pizza on your smartphone, imagine that,” Brady said during an event at the Heritage Foundation last week.
“We think it’s time the American people once again had a tax code they can be proud of and, more important, it’s time we had a tax code that shows we are proud of them and we recognize each American’s individual potential and we want them to reach it. So, at the end of the day, tax reform is a huge once-in-a-generation opportunity to improve the lives of millions of middle-class Americans, millions of young people looking for that next step and millions of seniors who want to conclude their lives after a generation of hard work,” he added.
Brady explained that the Republican tax reform proposal would “flatten the code from seven brackets to three” for individuals and families at 12 percent, 25 percent, and 35 percent. The highest current bracket, 39.6 percent, would be eliminated.
“The reason is simple – every dollar of income that Americans families and businesses can keep and put toward their own American dream is a dollar that grows our economy, creates jobs, and expands opportunity,” he said.
“All the rates go down, the elevator goes down at every rate. For example, the 15 percent bracket today goes to 12. The 10 percent bracket today goes to zero just as President Reagan did. He lowered the 11 percent bracket and made it zero. Their next level was a little higher, 15 percent. Ours is lower, which means those of modest income, the poor, the middle class, are better off under the tax reform plan we bring forward.”
Brady responded to Democrats who reject the rate increase from 10 percent to 12 percent, encouraging them to contact Vice President Joe Biden, Vice President Al Gore or former Secretary of State John Kerry.
“They voted with President Reagan to lower that 11 percent rate to zero just as we are lowering the 10 percent rate to zero, as well,” Brady said.
The GOP plan would also lower the corporate tax reform from 35 percent, which is the highest among developed nations, and bring it down to 20 percent. Brady said America’s small businesses would pay no more than 25 percent under the GOP plan.
Brady added that the Republicans are committed to eliminating the estate tax, or death tax.
“For the first time in over 100 years, owners of family farms and owners of family-owned businesses won’t have to fear double or even triple taxation when they pass down their life’s work to the their kids or grandkids,” he said.
Brady predicted that tax reform would pass out of Congress before the end of this year. Brady said his committee is open to input from the American people and from Democrats.
“Like President Reagan in 1986, President Trump fully supports the unified approach that we are taking this week. Working together, I’m confident and optimistic we will get tax reform to his desk this year, but we certainly have legislative hurdles to overcome before then,” Brady said.
“The Ways and Means Committee that I lead will continue to listen as tax reform moves through regular order, taking feedback from the American people and from our fellow Republicans in Congress and Democrats if they are serious about making the tax code fairer and simple, creating bigger paychecks and more jobs,” he added. “We welcome that participation.”