A press release from Congressman Randy Hultgren:
Hultgren Welcomes Tax Reform Blueprint to Fix Broken Tax Code and Restore Jobs and Hard-Earned Resources to Working Americans
Washington, DC —U.S. Representative Randy Hultgren (IL-14) today released a statement following the release of a unified framework to achieve pro-jobs, pro-families, pro-American, fiscally-responsible tax reform:
“Our current tax system does not reflect our workforce or our economy. It is costly and time consuming for individuals and families, and hurts the ability of Americans businesses to grow and create new jobs. We need real reforms that simplify the tax code, lower taxes on all Americans and their families and stimulate job growth,” said Rep. Hultgren. “I am very encouraged by this significant step toward reforming a tax code that for too long has obstructed economic growth in this country.
“I am particularly pleased that House leadership included the 25 percent rate for small and midsize businesses that I introduced in the Bring Small Businesses Back Tax Reform Act, which gives the freedom, means and flexibility for these employers to expand and create jobs. I am encouraged that is appears that the hard work of the Municipal Finance Caucus led those working on the tax reform blueprint to leave the federal tax deduction for municipal bonds intact. These bonds are primary method by which state governments and local municipalities finance public capital improvements and infrastructure construction, propelling job creation and economic growth. Tax reform is also an opportunity to expand the use of manufacturing bonds, and I encourage the inclusion of my bipartisan legislation to allow manufacturers to expand their businesses, invest in new equipment and hire more workers.”
Highlights of the tax reform framework include:
Lowers Rates for Individuals and Families
The framework reduces tax brackets for individuals from seven to three – 12%, 25% and 35% – which will simplify tax filing for American families.
Doubles the Standard Deduction and Enhances the Child Tax Credit
The framework nearly doubles the standard deduction so that middle-class families can keep more of their hard-earned paychecks. It also significantly increases the Child Tax Credit to offer more help to American families raising children.
Simplifies the Tax Code While Maintaining Important Incentives for Families and the Economy
The framework eliminates a number of itemized deductions and replaces this complex system with a larger standard deduction. However, it also retains tax incentives for work, higher education, retirement security, home mortgage interest and charitable contributions.
Repeals the Estate Tax and Alternative Minimum Tax (AMT)
The framework repeals the Estate Tax and substantially simplifies the tax code by repealing the existing individual AMT, both of which require taxpayers to pay a double tax on their income.
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%. Some of these businesses are currently paying nearly 40% in federal taxes, which is especially unsustainable in a high-tax state like Illinois.
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% to level the playing field for U.S. businesses competing against foreign competitors who are taxed at a rate similar to the one proposed in the framework.
To Boost the Economy, Allows “Expensing” of Capital Investments
The framework allows businesses to immediately write off (or “expense”) the cost of new investments for at least five years, allowing employers to grow their enterprises through new equipment, inventory and workers.
Moves to an American Model for Competitiveness
The framework ends the perverse incentive to move both profits and jobs overseas. It recognizes the benefits of a global economy, while encouraging U.S. companies to keep doing business at home.
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 the tax code no longer discourages U.S. businesses and their subsidiaries from reinvesting foreign profits in the United States.
“I will continue to work with my colleagues in the U.S. House of Representatives to tell the story of families, employers and communities in the collar counties of Chicago who could benefit a great deal from many of the proposals in the framework announced today,” said Rep. Hultgren. “And I will keep standing up for the taxpayers in my district who have been burdened by the taxes and rules imposed on them by state and federal governments for too long.”