One of the top priorities of this Republican Congress is to enact transformational tax reform that would make it easier for Americans to get ahead and make America once again the greatest place in the world to do business. With more jobs, higher wages, and a stronger economy, American workers and families would be the greatest beneficiaries of this reform. That’s why, following the principles outlined earlier this year by President Trump, the House, Senate, and administration are working together to meet this historic opportunity. And tomorrow, in a major address, House Speaker Paul Ryan will talk about what this kind of tax reform could look like and how it would lead to a more confident America.
FOR FAMILIES AND INDIVIDUALS: To make it easier to get ahead and simpler to pay your taxes.
Our plan provides lower tax rates and a larger standard deduction for American families.
It will also eliminate the death tax and the burdensome Alternative Minimum Tax.
To help lower tax rates for families, tax reform will eliminate many of the loopholes used by the wealthy and well-connected.
At the same time, we will protect deductions for home ownership and charitable giving that have become a bedrock part of our society.
Under our plan, we will reduce the number of tax brackets from seven to three, while vastly reducing the complexity taxpayers face.
Our plan will simplify our system so greatly that a family can file its taxes on a single postcard.
FOR AMERICAN BUSINESSES: To create jobs, increase wages for workers, and level the playing field.
America has fallen behind our foreign competitors and our outdated tax code is one of the primary reasons. Our plan is designed to once again make America the best place to invest and do business, which will lead to more jobs and higher wages for American workers.
Overall, this kind of tax reform, according to one estimate, could provide 1.7 million more jobs, raise wages by nearly 8 percent, and grow the economy by almost 9 percent.
LOWER RATE FOR SMALL BUSINESS
Currently, most small businesses pay their taxes through the individual tax code, which can be as high as 44.6 percent and makes it hard to compete with larger businesses.
Small businesses are the backbone of our economy, and that’s why we will create a new, lower tax rate for small businesses—more in line with what bigger businesses pay.
CORPORATE TAX REFORM TO SAVE JOBS
The United States currently has one of the highest corporate tax rates in the world, which is driving companies and job overseas. Our plan will reduce that rate so that we can compete on a level playing field and create more jobs.
To help pay for that lower rate, we will eliminate many of the special interest carve-outs that litter our tax code.
MAKING IT IN AMERICA
Today, our tax code encourages companies to move operations overseas, make things over there, and sell them back into the United States. At the same time, more American companies are converting to foreign businesses simply to avoid our tax system. We have to reverse this trend.
Our plan will level the playing field by removing incentives to ship jobs overseas and discourage foreign and domestic companies from using loopholes to avoid paying their taxes here at home.
Our plan will bring also eliminate the tax that punishes American companies from bringing back profits made overseas, allowing trillions of dollars currently stored overseas to come home and be invested in our economy.
These reforms, taken together, would provide the United States an enormous economic boost and allow workers and families to feel more confident about their lives. Right now, House and Senate tax writers are working with the Trump administration to turn these ideas into a unified Republican plan that we can all rally behind. And this effort, as Speaker Ryan will make clear tomorrow, is full-speed ahead.