Buchanan: "A Golden Moment for Tax Reform"
Urges Leaders to Take Immediate Action
WASHINGTON — U.S. Rep. Vern Buchanan, a senior member of the tax-writing House Ways and Means Committee, urged congressional leaders today to capitalize on a “golden moment for tax reform” by enacting sweeping legislation when the new Congress convenes in 2017.
Noting that President-elect Donald Trump as well as House and Senate Republicans support reforming the tax code, Buchanan said we must capitalize on this “historic opportunity” to jump-start our economy. The last time Congress adopted major changes to the tax code was in 1986 under former President Ronald Reagan.
“The tax code punishes ordinary Americans and suffocates business growth,” Buchanan said in a letter sent today to House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell. “It’s time to fix the economy by simplifying the tax code and reducing rates on individuals and businesses.”
Buchanan has been a leader on tax reform efforts as a Ways and Means Committee member and has introduced the Main Street Fairness Act to help small businesses.
His bill would ensure that small businesses – which account for 94 percent of all businesses in America – never pay a higher tax rate than large corporations. It would do so by removing income earned by so-called passthrough businesses from the individual tax code and treat this income like business income earned by corporations.
This provision was also included in a tax reform blueprint released by House Republican leaders.
The Speaker of the House and the Chairman of the House Ways and Means Committee have released a blueprint for reforming the American tax code. It includes a section that would lower rates for many of the nation’s small businesses. The inclusion of this provision points to a strong future for Buchanan’s bill and the pro-small business principles that drove its introduction.
As the tax blueprint says, “the tax treatment of business income will build on concepts developed by Rep. Vern Buchanan of Florida in his Main Street Fairness Act (H.R. 5076).”
The concept behind Buchanan’s bill is a part of the tax cut package pushed by President-elect Donald Trump.
“It’s clearly time that Washington stopped punishing small businesses and started helping them,” Buchanan said.
The businesses that would be helped by Buchanan’s plan account for more than 68 million jobs.
A broad coalition of prominent business and tax reform groups have expressed their support for Buchanan's measure, including the National Association of Manufacturers, Associated Builders and Contractors, the National Retail Federation, Americans for Tax Reform, the Florida Chamber of Commerce and Florida TaxWatch.
Full text of the letter can be found below:
November 14, 2016
The Honorable Paul D. Ryan
U.S. House of Representatives
H-232, The Capitol
Washington, D.C. 20515
The Honorable Mitch McConnell
S-230, The Capitol
Washington, D.C. 20510
Dear Speaker Ryan and Leader McConnell:
I write to urge that Congress capitalize on the historic opportunity to fundamentally overhaul the U.S. tax code and jumpstart the economy.
President-elect Donald Trump as well as House and Senate Republicans support reforming the tax code, presenting a rare and golden moment for tax reform.
The tax code punishes ordinary Americans and suffocates business growth. It’s time to fix the economy by simplifying the tax code and reducing rates on individuals and businesses.
People have been looking at their bank account balance with a knot in their stomach for too long.
Tax reform will help Americans get a job, make more money and spend less time doing their taxes. It’s time to give the American people a break – we have suffered together through years of slow growth. In fact, the Obama presidency did not see economic growth higher than 3 percent at any time.
Small businesses – which account for 94 percent of all businesses in America – deserve serious attention. The principles of my Main Street Fairness Act, which would ensure that small businesses never pay a higher tax rate than large corporations, should be a prominent feature of any tax code changes. I was very encouraged when my bill was included in the House Republican blueprint for tax reform and am hopeful that that blueprint will serve as a starting point for tax reform.
The concept behind my bill is also part of the tax cut package pushed by President-elect Donald Trump. It’s clearly time that Washington stopped punishing small businesses and started helping them. The businesses that would be helped by my plan account for more than 68 million jobs.
Significant changes to our tax system that put money in the pockets of Americans and save them time and headaches when filling out their taxes need to happen quickly.
Congress needs to take advantage of this rare opportunity to pass sweeping tax reforms.