Will Washington Reform Taxes to Promote Growth?
House Leader to Submit Tax Simplification Plan
(Washington, D.C.) – Congressman Dave Camp (MI), Chairman of the House Committee on Ways and Means, is set to release this week a plan to simplify the tax code. Broad tax reform and simplification has been identified as a priority by both the Administration and the Congress. Camp's plan would reportedly see the tax system dramatically altered, with the seven existing income tax brackets folded into two, with percentages set at 10 and 25 respectively. House Speaker Boehner office has spoken in support of this effort, and the President called for action in his State of the Union address, saying “Both Democrats and Republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here…”
Camp’s plan is likely to address some of the common goals identified by both parties: lowering the top rate while protecting the middle class and the poorest taxpayers. According to the analysis by the Joint Committee on Taxation, the revenue-neutral proposal would see the tax burden for those earning $20,000 a year or less fall over time, while only those at the top of the income scale – earning between $500,000 and $1 million – would see a slightly higher tax burden.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“We have heard multiple times that this will be a year of action for the administration. Here’s another chance for the President and Congress to work together on reforms that both parties agree are in the best interest of the American people. Simplifying the tax code, lowering rates, eliminating loopholes, and lifting the tax burden on workers and entrepreneurs – these are changes that would help grow our economy and ensure workers take home a greater share of their paycheck.
It's encouraging that some in Washington are willing to engage in a bipartisan discussion on how to create jobs and reduce taxes. This proposal seems like a worthwhile conversation starter, and perhaps a first step toward boosting growth and breaking the chains between Washington and special-interests. We’re encouraged by measures that seek to promote bipartisanship and bridge the gap between both parties to keep dollars where they belong – in taxpayers’ pockets.”