Making the tax code simpler and fairer topped the list of priorities in a House resolution introduced by U.S. Rep. Jim Renacci (R-OH) outlining 10 principles of tax reform that aim to reduce the heavy tax burden on American families and companies.
Renacci, a member of the House Ways and Means and House Budget committees, introduced H. Res. 530 on Thursday to serve as a foundation for ongoing efforts by Republicans to bring about the first comprehensive tax reform in more than 30 years.
“As a CPA with 30 years of business experience, reforming our tax code has been my mission since arriving to Washington,” Renacci said. “My hope is that these principles will help grow consensus and drive tax reform to the president’s desk.”
The resolution calls for raising the standard deduction, increasing the child tax credit and lowering tax rates substantially. The high individual rates in the current tax code take too much hard-earned money from ordinary Americans struggling to get by, the resolution said.
In addition, businesses of all sizes should see tax relief to help America reclaim its competitive edge, which would help promote hiring, investment and economic growth across the country, the resolution stated. The United States taxes businesses at the highest statutory rates in the developed world, hurting the ability of companies to hire new workers, raise wages and invest in new equipment.
The resolution also supports giving American workers a level playing field within the international economy. Furthermore, it encourages switching from a worldwide tax system that encourages companies to keep funds offshore, to a territorial system that encourages companies to repatriate profits.
Additionally, the House resolution supports the elimination of the “death tax” in order to support family businesses. It also favors an end to special interest carve outs that hurt the middle class.