House Republicans, led by Speaker Paul Ryan (R., Wis.), have introduced their tax reform plan, which would simplify the tax code so it could fit on a postcard.
"For years, hard working American taxpayers have asked Washington for a tax code so simple and fair and understandable that it could fit on a postcard," said Rep. Kevin Brady (R., Texas) who chairs the House Ways and Means Committee. "That is exactly what we propose."
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The plan would lower taxes for Americans at every income level and would limit the number of tax brackets to three. It would lower the corporate tax rate from the highest in the world to 20 percent, and would lower the top individual tax rate to 33 percent.
"This postcard form will simplify the number of tax brackets by more than half," Brady said. "It will take less from taxpayers at every income level because Washington takes too much of your hard earned dollars."
Additionally, the plan would repeal the death tax, eliminate the alternative minimum tax, cut taxes on small businesses to 25 percent, and cut taxes on saving and investment, just to name a few of the reforms included in the proposal.
"We unleash new job creation with the lowest taxes in modern history on local businesses, small or large, corporations or family owned," Brady explained. "Washington must take less from these job creators so they can grow the local economy rather than Washington’s economy."
To help businesses, the plan would stop overtaxing American products and would provide a tax-free return on investment for businesses.
"For the first time we’ll end penalties in the current tax code that too often force American companies to move their jobs, technologies, and headquarters overseas," Brady said. "No longer will we be the only major country that still taxes its own exports. No longer will American products lose out to foreign competitors, simply because they’re proudly stamped ‘Made in America.’"
Finally, the plan would restructure the IRS with the goals of clearing out bureaucracy and cutting down on intimidation.
"A simpler, fairer tax code demands a simpler, fairer tax collector," Brady said. "We will bust up the IRS as it is today, redesigning it into three smaller, more focused units to serve businesses, to provide state of the art taxpayer service for families and individuals and quickly and affordably resolving tax disputes."