Congressional Republicans Unveil Key Details Behind Tax Reform Legislation
From PA Chamber of Business & Industry
Last week, Republicans in the U.S. House of Representatives made public the blueprint of a bill that will aim to make the first significant changes to the nation’s federal tax system in more than 30 years.
The “Tax Cuts and Jobs Act” seeks to permanently lower the U.S. corporate tax rate to 20 percent and limit home interest deductions to loans up to $500,000. According to national news stories on the legislation, it would also increase the standard deduction for individuals and households, repeal state and local tax deductions (while preserving property tax deductions up to $10,000), repeal the alternative minimum tax, increase the child tax credit to $1,600 and repeal the estate tax by 2024. Notably, the bill would not make changes to 401(k)s. Now that the details of this bill have been shared, it is certain to be the subject of vigorous debate in the months ahead and has become the Trump Administration’s most important domestic issue.
Following the release of the draft, the U.S. Chamber’s Senior Vice President and Chief Policy Officer Neil Bradly issued a statement acknowledging that while the bill is needed, more work lies ahead in getting the right “policy mix” to ensure its passage in Congress. Also, PA Chamber Vice President Sam Denisco offered these comments to reporters: “The tax plan unveiled by the U.S. House of Representatives this week is a step in the right direction,” Denisco said. “For too long our overly complicated federal tax structure has unnecessarily burdened employers and negatively impacted our country’s competitiveness in the global marketplace. Our organization is ultimately pushing for a final bill that streamlines and simplifies the tax code; as well as additional reforms that will lower the tax burdens job creators are currently facing. The PA Chamber looks forward to working with federal officials as this draft proposal gets fine-tuned as it moves through the legislative process.”
The PA Chamber has joined the U.S. Chamber and other business advocacy groups nationwide in calling for Congress to act quickly on a tax reform package and get it to the president’s desk by the end of the year, having most recently signed this letter urging their quick action in achieving the goal of comprehensive, pro-growth tax reform. You can learn more about our support of this U.S. Chamber-led initiative and take action by visiting TaxReformforAmerica.com.