The last time Congress modernized the tax code, it was 1986.
That’s more than 30 years ago.
In the generation since, the tax code has grown out of control.
It’s been a dream come true for accountants and lobbyists. But it’s a nightmare for most Americans.
This has helped the powerful and the well-connected. But it’s hurt American workers. It’s hurt American industry. And it’s hurt America’s ability to compete with the rest of the world.
The bill unveiled today takes a giant step forward to make our tax code simpler, fairer and more competitive.
It catches us up with our major trading partners, who have been lowering business tax rates while we’ve stood still.
It will help bring back jobs and create new ones. It will boost American wages by promoting economic growth and incentivizing investment.
The centerpiece of the legislation is a middle-class tax cut. The average middle class family of four would see a tax cut of more than $1,400.
An increase in the child tax credit of $650 per child would mean real help for working parents.
Nearly doubling the standard deduction means that many lower income Americans will be removed from the tax rolls completely. And tax filing season will be much simpler for millions more.
Small businesses will also see significant tax relief from the rate reduction on the individual side, but also from an innovative new small business income deduction.
It will provide much needed tax relief to nearly all small businesses, down to the smallest family-owned corner store and family farmer.
Our bill recognizes the importance of small businesses in our economy. After all, they are responsible for a majority of new jobs.
The tax savings they receive could be spent on a new hire. It could be spent on giving raises to employees. It could be invested in growing a company.
All this adds up to Americans seeing more “Now Hiring” signs across the country.
Landmark tax relief during the Kennedy and Reagan Administrations grew wages, created jobs and made the United States more competitive.
Today, Congress has a golden opportunity to do it again.
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