Trump Administration, Congress Unveil Unified Tax Reform Framework
Press Release
The Trump Administration and Congressional Republicans released a unified framework for tax reform and simplification on Wednesday. The framework comes after months of meetings and negotiations between the administration, the House Ways and Means Committee, and the Senate Committee on Finance. U.S. Representative Bill Shuster (R-Hollidaysburg) praised the framework after it was announced.
"Hardworking families and small businesses in Pennsylvania are anxiously waiting for Congress to clean up the federal tax code and lessen their burden," said Congressman Bill Shuster. "The framework released today is a great step towards leveling the playing field for American workers and providing relief to the middle class."
Earlier this month, Congressman Shuster wrote an op-ed on how the outdated and complicated tax code is punishing to small businesses and families in Pennsylvania.
The new framework will allow the vast majority of Americans to have their taxes simplified to the point of "postcard' filing. The seven current tax brackets would collapse into three brackets of 12%, 25%, 35%, with the potential of adding an additional top rate for the highest income taxpayers. The Child Tax Credit would increase significantly, and the standard deduction would nearly double to $12,000 per individual and $24,000 per family. Additionally, small businesses will pay a maximum rate of 25%. Currently small business owners often file on the individual level, paying much higher tax rates.
In addition to cutting tax rates at all income levels, the framework repeals the Estate Tax, or "Death Tax," and the Alternative Minimum Tax, which forces Americans to spend time and money to figure out their taxes twice every year and then pay the higher of the two.
"I will be watching the committees of jurisdiction closely as they work to fill in more details," said Shuster, "but I am encouraged by the progress Congress has made so far. I'm committed to working alongside President Trump to support American jobs and make America a competitive place to do business through pro-growth tax reform."
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