Sen. Chuck Schumer and Rep. Nancy Pelosi, along with their followers in the “resistance” movement, are trying their best to discredit conservative economic policy proposals through deceptive comparisons, false narratives, and by designating everything in sight as “trickle-down.” This is because the truth about tax reform doesn’t further their agenda to expand the size of government. The GOP national tax reform plan, by contrast, focuses entirely on helping families and reinforces our agenda to rein in the out-of-control bureaucracy in Washington.
For more than three decades, families have paid a growing cost for our country’s increasingly complex and burdensome tax code that's chock-full of special interest caveats. This isn’t fair. The Tax Cuts and Jobs Act, released this week, will reform the tax code for the first time since President Ronald Reagan's historic tax relief 31 years ago. While liberal economic policies have betrayed families in high-tax states such as Illinois or California, under the the Tax Cuts and Jobs act a typical family of four earning $59,000 will save about $1,182 a year on their tax bill. Their total tax bill will go from $1,582 to $400. That's money desperately needed by families saving for their children's education or for their retirement.
A complete overhaul of the tax code will bring unprecedented simplicity to the system, and will make it affordable to file taxes. The Tax Cuts and Jobs Act will simplify the process of filing taxes by doubling the size of the standard deduction, removing the need for millions to itemize their deductions, and by condensing individual brackets from seven into four. Millions of families will find filing taxes simple enough to do on a postcard.
The Tax Cuts and Jobs Act also includes many tax reforms for businesses in order to spur economic growth. The bill makes it easier for entrepreneurs to start companies and will bring down the corporate earnings tax rate from 38.91 percent (currently the fourth-highest in the developed world) to 20 percent. This will help our businesses compete around the world. The Tax Cuts and Jobs Act also includes adding five years’ worth of full expensing for companies, and will modernize our international tax system in order to bring money currently pooled overseas back home. All of these reforms could lead to one of the greatest economic booms in our nation's history.
Lastly, the Tax Cuts and Jobs Act will phase out the Death Tax in six years, which hurts family-owned businesses and farms. Until then, the exclusion provision will be doubled. This will allow families to pass on their hard work to their children. It’s wrong that after paying taxes on an entire life’s worth or earnings, the government taxes a family again. This means that when families are grieving the loss of a loved one, they’re forced to break up farms in order to stay afloat.
The Tax Cuts and Jobs Act is focused on growing the economy, bringing jobs back to Main Street, and increasing paychecks for workers. We’re committed to helping families because the family unit is the cornerstone of our nation. Republicans made a promise to voters that’d we’d deliver them tax relief – and we’re holding to it. The Tax Cuts and Jobs Act will fix our bureaucratic tax nightmare and puts families first again.
Rep. Ron Estes, R-Kan., represents Kansas' fourth congressional district. He is a member of the Republican Study Committee. You can follow him on Twitter: @RepRonEstes