Americans for Tax Reform today provided feedback applauding Senate Finance Committee Chairman Orrin Hatch’s mark of the Tax Cuts and Jobs Act.
The Tax Cuts and Jobs Act is pro-family and pro-growth.
The legislation gives tax cuts for Americans of all income levels and simplifies the code. The largest benefit goes to the middle class, according to the Joint Committee on Taxation.
The Act helps Americans by doubling the standard deduction, expanding the Child Tax Credit, and fully repealing the Alternative Minimum Tax. The Act also simplifies the code by repealing distortionary deductions and credits, like the State and Local tax deduction.
On the business side, the Act makes America more competitive in the world, resulting in more jobs and stronger economic growth: another win for Americans of all income levels, most particularly those currently without a job.
The Act reduces the current 35% marginal corporate tax rate, the highest in the developed world, to 20% and replaces the worldwide taxation system with a territorial system. It further implements 100 percent expensing of new investments for five years, and it maintains the existing deductions for advertising. In addition, section 1031 for like-kind exchanges is also maintained, and there is a reasonable deduction for interest expenses.
Americans for Tax Reform, however, does urge the Committee to fully repeal the Death Tax, grandfather in the elimination of the deduction of deferred employee compensation, and extend the minimum hold period for access to long-term capital gains to three years. These changes would create even more jobs and economic growth.
While more work needs to be done, Americans for Tax Reform applauds the Senate Finance Committee on its work and supports the Tax Cuts and Jobs Act.