Walorski Statement on Tax Reform Framework

Wednesday, September 27, 2017

Walorski Statement on Tax Reform Framework

Will Travel with President Trump to Indiana for Announcement

WASHINGTON – U.S. Rep. Jackie Walorski (R-Ind.) today released the following statement on the framework for tax reform and middle class tax relief announced by Congressional leaders and the Trump administration:

“Hoosiers deserve a fairer, simpler tax code that makes America more competitive, helps businesses grow and create jobs, and allows families to keep more of their hard-earned paychecks. That’s exactly what we’re going to deliver with tax reform.

“This framework gives tax relief to middle-class families and simplifies the tax code so they can file their taxes on a postcard. It lowers tax rates on small businesses, helps manufacturers build more American-made products, and makes America more competitive in the global economy. And it puts American workers on a level playing field by ending the incentive for companies to send jobs and capital overseas.

“We have a once-in-a-generation opportunity to put American families, workers, farmers, small business owners, and manufacturers on a stronger path, and I look forward to working with my colleagues on the Ways and Means Committee in the coming weeks to get a bill ready for the president’s signature.”

BACKGROUND

The Trump administration, House Ways and Means Committee, and Senate Finance Committee today announced a unified framework for pro-growth tax reform. Walorski, a member of the tax-writing Ways and Means Committee, will travel to Indianapolis with President Trump today for his speech on tax reform.

The framework will serve as a template for the committees to develop legislation to simplify and modernize the tax code, provide tax relief to middle class families and small businesses, boost job creation, and make the U.S. more competitive in the global economy.

Middle-Class Tax Relief

  • The framework lowers middle-class families’ tax burden by roughly doubling the standard deduction, expanding the Child Tax Credit, and creating a non-refundable credit for non-child dependents.
  • It simplifies the tax code and allows most individuals to file their taxes on a postcard by eliminating most itemized deductions, repealing the alternative minimum tax (AMT).
  • It retains tax incentives for home mortgage interest and charitable contributions, as well as tax benefits that encourage work, higher education, and retirement security.
  • It makes the tax code fairer by consolidating the current seven tax brackets into three brackets of 12, 25, and 35 percent, with a possible fourth bracket for the highest-income taxpayers.
  • It protects family farms and businesses by ending the onerous death tax.

Jobs and Economic Growth

  • The framework lowers the tax rate on small and family-owned businesses to 25 percent while calling for measures to prevent wealthy individuals from recharacterizing personal income as business income.
  • It lowers the corporate tax rate to 20 percent, below the 22.5 percent average among industrialized nations.
  • It allows for full and immediate expensing of capital investments for at least five years so businesses can purchase new equipment.
  • It eliminates special interest tax breaks and loopholes while maintaining the research and development and low-income housing credits.
  • It ends the incentive to send jobs and capital overseas by transitioning to a territorial tax system and repatriating foreign earnings that have accumulated overseas.

Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee.

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