Federal Tax Reform:
Republicans Unveil Federal Tax Reform Proposal

The U.S. House of Representatives Ways and Means Committee on November 2 released the Republicans’ tax reform proposal (HR 1, The Tax Cuts and Jobs Act), and sponsors estimated that during the first 10 years that the proposal would be in effect, it would reduce taxes on individuals by almost $1 trillion.

The proposal’s tax reductions, and their estimated savings to taxpayers, include:

Tax increases, and their estimated cost to taxpayers, include:

In materials describing the legislation, the committee stated: “It will deliver much-needed tax relief to millions of families, help our workers and job creators compete and win here at home and around the world, and make the tax code simpler and fairer for all Americans. It will fuel economic growth – leading to more jobs, fairer taxes, and bigger paychecks for generations to come.”

The committee also said the reform package “prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.”

Governor Jerry Browns strongly disagreed, and said in a written statement: “The hurried tax proposal unveiled by Congress today transfers income from individuals and families to large and powerful corporate structures. This is bad economic policy and bad for the American people.”

Some of the highlights:

President Donald Trump said the plan “is another important step toward providing massive tax relief for the American people,” and said tax reform is “the rocket fuel our economy needs to soar higher than ever before.”

House Minority Leader Nancy Pelosi criticized the reform legislation as the “billionaires first tax plan,” and said it is “an unconscionable attack on working families.”

 

 

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