Our tax code is broken. Americans still feel like they are paying too much in taxes. Businesses are moving jobs overseas in order to stay globally-competitive. And most people still don’t trust the IRS to fairly enforce the law.
Yes, there is a Better Way.
Our unified Republican government is determined to reform our tax code to make it leaner, fairer, and more competitive. Here is the crux of our plan:
Simplify the tax code
Americans dread doing their taxes every year, and for good reason. The forms are too long and complicated. The tax brackets are confusing. And the rates themselves are too high. Our plan simplifies the system so you can file your taxes on a form as simple as a postcard. It consolidates the seven existing tax brackets into three, creates a larger standard deduction and child tax credit, and lowers rates so hardworking families can keep more of their hard-earned paychecks.
Create a level-playing field for American businesses
Our tax code today puts American job-creators at an inherent disadvantage to foreign competitors. Unlike most nations, American goods shipped overseas are subjected to both U.S. and foreign taxes. This means countries like China can manufacture and sell goods abroad at a much lower cost than companies here in the states. Our plan would level the playing field for American businesses by moving to a consumption-based, border-adjusted tax code that makes exports tax-free.
Bring American jobs back from overseas
Adopting a consumption-based tax code would in turn offset the cost of lowering the corporate tax rate from its current rate of 35 percent—the highest in the industrialized world—down to 20 percent. Together, these reforms would incentivize businesses to repatriate overseas profits and bring jobs back home. This means more good-paying jobs for hardworking Americans, and a more globally-competitive environment for our manufacturers and small businesses.
Make the IRS a customer service-focused agency
Today, we have a tax code that no one understands run by an agency no one trusts. The IRS has abused its power by targeting Americans based on their personal beliefs, and widespread mismanagement has rightfully eroded confidence in the agency. Our plan overhauls the IRS to refocus its purpose exclusively on excellent customer service. It installs safeguards to protect taxpayers' confidential information and right to appeal disputes quickly and fairly. And it limits the IRS commissioner to just two three-year terms in office.