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Restoring Confidence with Tax Reform

June 27, 2017
Weekly Columns
The last time Congress made significant changes in the tax code, Ronald Reagan was president. A lot has changed since then, and it is long overdue for an overhaul of the tax code that reflects our changing economy, trade practices and societal priorities. When Speaker Ryan delivered his speech on tax reform last week, he made it clear that Americans must have confidence in our economy, their jobs, and their ability to care for themselves and their families. Our current tax code is overly burdensome and complicated. We need to replace it with something that is fair and simple, promotes economic growth and lets hard working Americans keep more of their earnings.
In the proposed Republican plan, reducing the number of tax brackets from seven to three will make tax returns simpler and shorter - perhaps as short as a postcard. The plan will also reduce the top individual tax rate to 33%, create a larger standard deduction, a larger child tax credit and repeal the unfair estate tax, sometimes known as the death tax.
The new tax plan will not only help individuals, but it will help American businesses and manufacturers. Eight out of ten small businesses are taxed under individual rates, and the most successful of these pay nearly 45%. Currently, the corporate tax rate in the United States is one of the highest in the world at 35%. This incentivizes corporations to take their businesses overseas for lower tax rates, costing thousands of jobs here and stifling economic growth. By lowering the corporate tax rate, we can promote American industrial leadership, capital and job creation on our home soil.
Each year that we put off tax reform, our nation continues to lose capital, businesses and jobs, and families lose thousands of dollars. With a new tax code, jobs in Oklahoma alone are projected to increase by nearly 20,000, and the average taxpaying home in Oklahoma will receive about $4000 in tax relief. The end result of this permanent tax plan is clear. It will restore job growth across the nation, retain American-based businesses and improve confidence and simplicity for the American taxpayer.
Issues:Taxes