CRAMER: Major Tax Reform Framework Unveiled
Read the full plan here: https://goo.gl/8rQN4F
Recording: Video Statement
WASHINGTON D.C. – Congressman Kevin Cramer strongly supports the release of the most ambitious framework for tax reform since 1986.
The framework is the result of numerous hours of negotiations by Republican leaders in the House, Senate, and Trump Administration to establish a base for which to begin drafting tax legislation.
Three principles are consistently upheld throughout the document – a lower, simpler, and more globally competitive tax code. Americans’ taxes are cut at all income levels, and we eliminate painful taxes such as the Death Tax and the Alternative Minimum Tax. Our tax system needs to be simple and fair, which means no more complicated tax filings and getting rid of special-interest loopholes. Also, with America having one of the highest tax rates in the industrialized world for businesses, the plan produces more jobs by reducing tax rates for small and large businesses.
“It’s time for America to start winning again,” said Cramer. “This plan means more money in your pocket, more job opportunities for you and your family, and economic growth benefitting us all. After working for months, and holding hearings for years, we’re ready to begin drafting legislation and moving it through Congress to get this plan done for North Dakota and America as a whole.”
Cramer continues working with his colleagues in Congress to ensure that safeguards remain in place for charities, home mortgages, and small businesses - including family farms. He has also advocated for the permanent elimination of the death tax as well as preserving the ‘stepped-up basis’ provision, which maintains the growing value of assets for small businesses and farmers when they pass their businesses along to the next generation of family business owners.
Read the highlights of the framework below, or see the whole plan here.
Lowers Rates for Individuals and Families
- The framework shrinks the current seven tax brackets into three – 12%, 25% and 35% – with the potential for an additional top rate for the highest-income taxpayers to ensure that the wealthy do not contribute a lower share of taxes paid than they do today. Also, many lower-income Americans will have their taxes dropped to 0% in total.
Doubles the Standard Deduction and Enhances the Child Tax Credit
- The framework roughly doubles the standard deduction so that typical middle-class families will keep more of their paycheck. It also significantly increases the Child Tax Credit.
Eliminates Loopholes for the Wealthy, Protects Bedrock Provisions for Middle Class
- To provide simplicity and fairness the framework eliminates many itemized deductions that are primarily used by the wealthy, but retains tax incentives for home mortgage interest and charitable contributions, as well as tax incentives for work, higher education, and retirement security.
Repeals the Death Tax and Alternative Minimum Tax (AMT)
- The framework repeals the unfair Death Tax and substantially simplifies the tax code by repealing the existing individual AMT, which requires taxpayers to do their taxes twice.
Creates a New Lower Tax Rate and Structure for Small Businesses
- The framework limits the maximum tax rate for small and family-owned businesses to 25% - significantly lower than the top rate that these businesses pay today.
To Create Jobs and Promote Competitiveness, Lowers the Corporate Tax Rate
- So that America can compete on level playing field, the framework reduces the corporate tax rate to 20% – below the 22.5% average of the industrialized world.
To Boost the Economy, Allows “Expensing” of Capital Investments
- The framework allows, for at least five years, businesses to immediately write off (or “expense”) the cost of new investments, giving a much-needed lift to the economy.
Moves to an American Model for Competitiveness
- The framework ends the perverse incentive to offshore jobs and keep foreign profits overseas. It levels the playing field for American companies and workers.
Brings Profits Back Home
- The framework brings home profits by imposing a one-time, low tax rate on wealth that has already accumulated overseas so there is no tax incentive to keeping the money offshore.
Read the full plan here.