WASHINGTON — Congressman Scott Tipton (CO-03) issued the following statement after the House Republican Conference unveiled the United Framework for Fixing Our Broken Tax Code:
“The current tax code does not work for Americans. It is too complicated for individuals and families, punishes small businesses for investing to expand or create jobs, and puts U.S. companies at a disadvantage on the global stage. The framework announced today includes the principles I believe are necessary to allow individuals and families to keep more of the money they earn. The framework consolidates our tax brackets from seven to three and doubles the standard deduction for individuals and families, so while the tax brackets have shifted, the first $24,000 that a family earns, or the first $12,000 that an individual earns, will be free from the federal income tax.
“The framework also supports small businesses by capping the tax rate for family-owned businesses and sole-proprietorships at 25 percent. It would also make the U.S. the best place in the word to do business by setting the U.S. corporate tax rate just below the average corporate tax rate of the industrialized world.
“I am encouraged by this framework, and I look forward to working with my colleagues to build on it and finalize our tax reform plan.”
The United Framework for Fixing Our Broken Tax Code doubles the current standard deduction to $24,000 for married taxpayers filing jointly and $12,000 for single filers. The framework also consolidates the seven tax brackets under the current system to three tax brackets set at 12 percent for the lowest-income earners, 25 percent for middle-income earners, and 35 percent for the highest-income earners. Low-income earners who fall within the current 10 percent tax bracket are expected to be better off under a three-bracket system combined with the doubled standard deduction.
The framework also:
· Eliminates most itemized tax deductions, but retain incentives for home mortgage interest and charitable contributions;
· Limits the tax rate applied to small and family-owned businesses to 25 percent;
· Sets the corporate tax rate at 20 percent.