Fair and Simple Tax Relief
On Wednesday (September 27), President Donald Trump and the House of Representatives unveiled a tax relief package for American taxpayers. The Fair and Simple Tax Relief proposal does the following, according to the House Committee on Ways and Means:
- Lowers taxes at every income level so all Americans can keep more of their hard-earned money to save, spend, and invest the way they see fit.
- Shrinks the current seven tax brackets into three - 12%, 25%, and 35%.
- Delivers the lowest tax rates in modern history for American job creators of all sizes so they can invest more money in growing their businesses and creating jobs.
- Eliminates the maze of unfair special interest loopholes that keep rates artificially high for everyone.
- Increases the standard deduction so the vast majority of taxpayers don’t have to deal with the complexity of itemizing.
- Separates wage income from small business income for the first time in history so that small businesses are no longer taxed under the individual side of the code at rates as high as 44.6%.
- Ends the Death Tax so family-owned farms and businesses can be passed down to the next generation without facing a potentially devastating tax bill.
- Repeals the Alternative Minimum Tax so millions of workers, families, and job creators are no longer forced to calculate their taxes twice every year.
- Cuts in half the tax rates on personal savings and investment so Americans can invest in their local economies and build toward a more financially secure future for themselves and their families.
The House Republican Conference explained why America needs tax relief:
OUR BROKEN TAX CODE IS A DRAG ON OUR ECONOMY
Our broken tax code has helped cement the slow-growth status quo of sub-2 percent economic growth. But if- as a result of tax reform - the US economy averages 3 percent growth in the next 10 years, we’d see millions of jobs created and income for a family of four would be thousands of dollars higher.
AMERICANS SPEND TOO MUCH MONEY FILING TAXES
The burdens and complexities of our broken tax code come at a real cost to the American people. Independent estimates show that taxpayers spend a combined $99 BILLION each year complying with the individual income tax - money Americans could otherwise use on what is important to them and their families.
AMERICANS AT EVERY INCOME LEVEL DESERVE TO KEEP MORE OF THEIR PAYCHECKS
Every hard-earned dollar Americans can keep from their paychecks and put towards their own American Dream is a dollar that grows our economy. That’s why Republicans are proposing to reduce taxes for all Americans at all income levels.
In Arkansas, medium-income Households could gain $3,723 in after-tax income and approximately 14,355 jobs would be added to the state's economy.
September 27, 2017: Westerman on Tax Relief: Congress Has “Listened to the American People”
September 28, 2017: Creating Fair and Simple Tax Relief for Arkansas