Right now, the current federal tax code is a convoluted and broken mess that spans over 70,000 pages. And with it constantly changing, many taxpayers rightly feel as though everyone has a special tax break, except for them. As a Member of the House Ways and Means Committee, the principal tax writing committee in Congress, I am working to change that. Together with my colleagues, we are working on creating a Pro-Growth tax code that will drive innovation, grow the economy, and increase take-home pay.
Here are just a couple of highlights of what we are working on, and how it will affect you.
Increasing the standard deduction will not only increase the amount of your tax free income, but it will eliminate the need for many of the deductions and credits. This means that 95% of all Americans will be able to file their tax return on a form as simple as a postcard. Pairing this with simplified tax brackets and lower rates, means that you and your family get to keep more of your hard-earned paychecks for the things that are important to you.
I’m also working to lower business tax rates, especially on our community owned, small businesses. Today, more than half of the private sector workforce is employed in a pass through business, which means that often times, they’re paying a top rate of over 40%. This puts Michigan businesses at a steep disadvantage when they try to compete in the global marketplace against companies who pay income taxes of 25% or lower. Lowering the business rate will allow our companies to compete on the world stage, without a self-imposed tax hurdle, which will ultimately increase our labor force and wages.
As Congress moves through the process of reforming our tax code, we are doing so with Main Street and the middle class in mind.