Why I’m Fighting for Tax Reform
When I got my first job at McDonald’s, my parents gave me good advice about saving for my future and not letting the burdensome tax code hold me back.
“In America, not only will you be taxed when you earn it, you will be taxed when you save it, and if you save enough, you will be taxed when you die.” — My dad.
He was right then and he is right today. This isn’t a fair system.
The punishing complexity of America’s broken tax code makes it harder for people to save their hard-earned dollars at nearly every stage of their life.
Consider the following:
- Today’s tax code contains seven individual income tax brackets — each of them discouraging hard work by imposing higher taxes on Americans’ income as they climb the economic ladder.
- With all the various taxes on savings and investments, the effective tax rate on investment income can now be greater than 50 percent — penalizing Americans who save for the future, plan for retirement, and invest in our economy.
- The broken tax code is so complex that 9 out of 10 Americans pay for software or a professional tax preparer to file their taxes each year. That amounts to billions of hours and dollars that middle-class families must spend filling out tax forms — all to send more of their hard-earned paychecks to the IRS.
It is time for a complete overhaul. So, Republicans unveiled a framework for tax reform to do just that.
Our framework:
- Outlines a fairer and flatter tax code with fewer tax brackets, not seven.
- Doubles the standard deduction so that more of what you earn is tax free.
- Eliminates special interest loopholes and makes it easier for everyone to file their taxes on a postcard.
Looking for more specifics? Dive into the framework by visiting fairandsimple.gop.
Right now, my colleagues and I on the House Ways and Means Committee are hard at work translating this framework into legislation — and we are working through this robust process with you in mind.
This isn’t about the 1 percent. It is about the middle-class families who sit down at their kitchen table every night and try to figure out how to stretch that last dollar. It is about the entrepreneurs who are looking to open their doors and invest in their employees and communities with new jobs and higher wages. It is about the kids who hope to save enough from their first high school job so they can go to college. And, it is about people like my parents who are looking for a fair shot at the American Dream.
