House Ways and Means Committee Chairman Rep. Dave Camp (R-Mich.) said on Tuesday that the federal tax code demonstrates Washington’s inefficiency and called for compressive reform.
“It’s time to stand up and say ‘enough is enough,'” Camp said. “Tax reform will make the tax code simpler and fairer so our economy gets stronger, more jobs are created and hardworking Americans see bigger paychecks. We’ve already lost a decade due to how weak the economy is, and before we lose a generation, it’s time for real, meaningful tax reform to get this economy back on track.”
Camp unveiled the Tax Reform Act of 2014 in February in an effort to simplify the tax code and make it more equitable.
The measure would establish an inflation-adjusted standard deduction of $11,000 for individuals and $22,000 for married couples. It would also increase the child tax credit to $1,500 per child. Seniors over the age of 65 would file a simple tax return called Form 1040SR.
“My plan makes the tax code more effective and efficient by getting rid of special interest handouts to lower tax rates for individuals, families and businesses,” Camp said. “Based upon non-partisan analysis, my tax reform plan can put an extra $1,300 a year in the pockets of middle class families.”
The measure would allocate $126.5 billion to the Highway Trust Fund to fund highway and infrastructure investments over eight years. It would also rollback the medical device tax and medicine cabinet tax.
The Joint Committee on Taxation concluded that Camp’s bill would create 1.8 million jobs, allow 95 percent of filers to get the lowest tax rate possible by claiming the standard deduction and increase gross domestic product by up to $3.4 trillion.
“That’s the tax code Americans need – and deserve,” Camp said.