As lawmakers in Washington, D.C. turn to tax reform, President Donald Trump calls for Congress to enact the first major revisions to the tax code since 1986.
Republican U.S. Senator Dean Heller joined the fray, publishing an op-ed in the weekend newspaper in which he joined the president’s call for reform.
President Trump created a little bit of chaos last week when he backed the Democrat’s plan to pass a short-term spending bill and extension of the debt ceiling. The president’s decision caught some Republicans by surprise.
Trump said he did it in order to clear the way for his number two priority, which is tax reform, and when it comes to the tax issue, Senator Dean Heller is his willing partner.
In his op-ed, Heller called for simplifying the country’s outdated and complicated tax code, saying business owners in Nevada tell him the tax code and regulations make it difficult to compete and hire new workers.
Although details of the final Republican plan aren’t set in stone, the plan appears to call for reducing the number of tax brackets from seven to just four, topping out at 25 percent. A single person making more than $91,000 now would have to pay 28 percent, and the numbers top out at 39.6 percent for incomes of more than $418,000.
In exchange for the lower rates, deductions could be eliminated, except for home mortgage interest and charitable giving. The corporate tax rates would also get a cut, from 35 percent now and go down as low as 15 percent. Although deductions currently, prevent companies from paying the higher rate.
Heller said he has faith there will be a tax reform bill passed by Christmas.
“Tax reform’s going to come here in September. It’s going to start rocking and rolling,” said Heller. “I just hope our leadership tells us we’re not going home for the holidays until we get this done, but I feel pretty confident, and being on the tax-writing committee, I think it’s important to make sure that there’s a good voice.”
There are still obstacles in the way, most notably Democratic objections that most of the benefits of the Republican party’s approach will accrue to wealthier taxpayers, even though the bill would eliminate all taxes for singles earning $25,000 or couples making $50,000.