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Exclusive Analysis of the GOP Tax Plan
American Voters,
Yesterday, Republicans unveiled their plan for a sweeping update of America’s tax code. Our nation’s stagnant and convoluted tax code has not seen reforms like this since 1986, and it is up to conservatives to ensure the radical left and the special interests don’t stop this from passing.
The plan revealed yesterday would unleash economic growth, create jobs and increase wages for millions of Americans. The proposed tax reform framework addresses the five conservative principles of tax reform:
Lowering and Simplifying Individuals’ Taxes: The proposed plan simplifies the current system into three tax brackets with rates of 12 percent, 25 percent, and 35 percent. The standard deduction roughly doubles to $12K for single filers and $24K for married couples, which means your family gets to keep more of your income every year.
Lowering the Corporate Tax Rate: With the highest corporate tax rate in the industrialized world, American businesses face stiff competition internationally. This new plan would lower the overall corporate tax rate to 20 percent and ensure small businesses have a maximum tax rate 25 percent. These changes allow companies to hire more people and boost wages for millions.
Permit Tax Free Entrepreneurship: The policy known as full expensing would allow businesses to expense the full value of capital investments, is also included for five years. While not permanent, the five-year provision will help generate significant investment, and thus economic growth and wage increases.
Establish a Territorial Tax System: In other words, overseas profits made by U.S.-based companies will no longer be double-taxed when those profits are brought back to the United States to be spent or invested. This change allows nearly $2.6 trillion in profits to return to the U.S.
End Cronyism: It will be up to conservatives to ensure that the special interests are not allowed to continue their preferential treatment in the tax code.
President Trump and Republicans in Congress took an important first step by unveiling their tax reform proposal. Now they need to hear from their conservative constituents. The liberal left and countless special interest groups will be out in full force to oppose this once in a generation tax reform.
Thank you for all you do to ensure once in a generation tax reform is accomplished.
-Dan
Dan Holler
Vice President
Heritage Action for America
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