(BigGovernment.news) What would real, honest-to-goodness tax reform look like? If House Republicans get their way someday, it would dramatically shrinking the multi-volume tax code to a fraction of what it currently is, making it much simpler to understand and follow in the process.
As reported by the Washington Free Beacon, led by Speaker Paul Ryan of Wisconsin, House Republicans have introduced, as part of their “A Better Way” campaign, a plan that would reduce the tax code to a point where it would fit on a postcard.
“For years, hard working American taxpayers have asked Washington for a tax code so simple and fair and understandable that it could fit on a postcard,” said Rep. Kevin Brady, R-Texas, who chairs the House Ways and Means Committee. “That is exactly what we propose.”
The plan reduces taxes for Americans at every level of income and it would reduce the number of tax brackets to just three. It lowers the corporate tax rate from the highest in the world to 20 percent while capping the top individual tax rate at 33 percent.
“This postcard form will simplify the number of tax brackets by more than half,” Brady said. “It will take less from taxpayers at every income level because Washington takes too much of your hard earned dollars.”
For years proponents of a simplified tax code said have said the government would likely collect more in taxes while spending far less in enforcement costs. A simpler code makes compliance far easier, they say.
“Our tax code is a mess, and that’s putting it lightly. Multiple brackets. High rates. Special interest breaks everywhere. Rules and regulations that are too complicated to understand,” says the GOP plan. “It costs more and more each year just to do your taxes, let alone pay them. All of this drags people down and leaves businesses buried in paperwork and compliance problems. So instead of promoting growth, our tax code is pushing jobs overseas. And the agency charged with overseeing all of this—the IRS—has repeatedly violated the trust of the American taxpayer.
“We need a new tax code. It needs to be fair and simple for everyone,” the plan continued. “It should be so simple that most Americans can do their taxes on a form as simple as a postcard. Our tax code should be built for growth. It should help make the United States the best place in the world to hire and invest. And if we’re going to have a better tax code, we need a better IRS, one that puts the taxpayers first.”
In addition to slashing rates and reducing brackets, the plan repeals the so-called “death” tax, eliminates the alternative minimum tax, cuts taxes on small businesses to just 25 percent and reduces taxes on saving and investment, among other changes.
“We unleash new job creation with the lowest taxes in modern history on local businesses, small or large, corporations or family owned,” Brady explained. “Washington must take less from these job creators so they can grow the local economy rather than Washington’s economy.”
Of course President Obama will never sign this, but Obama is on his way out. What’s more, this plan would have a far better chance at becoming law under a President Trump – who has already pledged to “simply” the tax code and grant Americans tax relief – versus a President Hillary, who hasn’t made any commitment at all to tax reform.