House Republicans Unveil Tax Reform Blueprint
The House Tax Reform Task Force, led by House Ways and Means Chairman Kevin Brady (R-TX), recently released a tax reform blueprint, “A Pro-Growth Tax Code for All Americans,” as part of House Speaker Paul Ryan’s (R-WI) “A Better Way” agenda. According to the plan, the goals of the tax reform blueprint are to fuel job creation and create opportunity, make the tax code simpler and fairer, and improve the IRS’s customer service.
The plan intends to lower the top corporate tax rate from 35 to 20 percent, which would be the largest corporate tax rate cut in U.S. history. “Today, the tax code is littered with special-interest deductions and credits that are designed to encourage particular business activity,” the blueprint states. “The blueprint generally will eliminate special-interest deductions and credits in favor of providing lower tax rates for all businesses and eliminating taxes on business investment.” The only business credit the blueprint specifically calls for is a credit to encourage research and development.
Although the blueprint has little chance of enactment this year, it is likely to form the basis for legislation House Republicans hope to accomplish in 2017. Of course, the next president, and the party controlling the Senate following this November’s elections, will also have a critical role to play in shaping any tax reform legislation that may ultimately be enacted.