House Ways and Means Committee Chairman Kevin Brady (R-TX) said at a Heritage Foundation tax reform event on Thursday that tax reform will help citizens “pursue your own American dream.”
At the event, Heritage Action Chief Executive Officer Michael Needham charged, “There’s a lot of work to do left in this Congress. If Republicans are going to make good on their promise to Make America Great Again, no tax looms larger than overhauling our tax code.”
The last major overhaul of our tax code was in 1986, before the Internet, before the iPad, before the iPhone, before the boom of the 1990s, and before the downturn of 2008, before the emergence of the 1099 economy. A lot has changed, and yet our tax code essentially remains the same, double taxing American investment, rewarding those who send jobs overseas, while overtaxing those who create jobs at home.
Brady serves as a crucial figure in the center of tax reform. He and the House Ways and Means Committee will draft most of the legislation that will become the tax reform package.
“It is an exciting week to be a conservative,” Brady said. “For the past several months, we have been working with President Trump and his team to develop strong conservative principles for bold, transformational tax reform.”
Brady then explained that the tax reform blueprint would collapse the current framework’s seven tax brackets into three and create income tax rates of 12, 25, and 35 percent. The tax plan would also cut the corporate tax rate to 20 percent, eliminate loopholes for special interests, eliminate the alternative minimum tax, and repeal the estate tax – otherwise known as the death tax.
The tax plan will also allow businesses to write off capital investment for five years. Brady explained, “This is not just investing in physical capital; it makes it easier to invest in human capital, to invest in you, the American worker.”
Brady suggested that Americans will find it incredibly easy to file their taxes. “Nine out of ten American can file on a piece of paper the size of a postcard,” Brady said.
Rep. Brady explained that the tax reform platform will have three key planks: more jobs, bigger paychecks, and fairer taxes.
Chairman Brady celebrated American industry and argued that reforming the tax code can bring American jobs and factories back the United States. Brady said:
American made products set the benchmark for quality and innovation, yet we see less “Made in America” products, and more of our businesses and jobs and factories are moving overseas with more competitive, more modern tax codes. If we want to unleash this nation through tax reform, we have to start by unleashing the individual potential of every American.
The Texas Republican added, “By giving you the chance to put your talents into action will give you the chance to create a better life for you and your family to pursue your own American dream.”