U.S. Rep. Rodney Davis (R-Ill.) released the following statement after the Republican members of the House gathered to discuss tax reform and formally release their framework today.
“Today House Republicans united around middle-class Americans who are being crushed by our outdated tax code,” said Davis. “Illinois residents know all too well the impact high taxes are having on their families’ ability to save and get ahead and our state’s ability to compete for good-paying jobs. Our plan uses Illinois as an example of what not to do. We want to cut tax rates for individuals, simplify but maintain important middle-class deductions, and make it so American businesses can compete globally. There’s still much more work to be done, but this is our shot at changing the lives of each working American for the better and I hope we get bipartisan support to get it done.”
Davis held a Tax Reform Tour in August hosting roundtables, visiting businesses, and speaking with workers in the 13th District about the importance of tax reform.
Pro-Growth Tax Reform Plan
For Workers – benefits middle-income families, who are too often forgotten by Washington, by:
• Simplifying – Eliminates special interest loopholes, 9 out of 10 Americans will be able to file their taxes on a simple post card.
• Keeping more of what they earn – Lowers rates for Americans across the board. Shrinks the current seven tax brackets into three 12%, 25%, and 35% with an addition top rate to ensure highest-income taxpayers do not pay less than they pay today. The Tax Foundation estimates that middle-income families in Illinois will save $5,256 each year.
• Preserving important middle-income deductions – Doubles the standard deduction $24,000 for joint filers and $12,000 for single. Helps Americans buy a house, raise their children, pay for college, or donate to charity.
• Allowing Americans to save more – Cuts in half the tax rates on personal savings and investment.
For Job Creators – makes it easier for businesses to create jobs,Tax Foundation estimates it will lead to that more than 70,000 jobs in Illinois, by:
• Separating small business income – Under this plan, small businesses are no longer taxed under individual side, which has rates as high as 44.6%. The maximum tax rate for small businesses would be 25%.
• Ending the “Death Tax” – Family farms and businesses will be able to be passed down to future generations without a large tax bill.
• Repealing the Alternative Minimum Tax – Millions of Americans won’t have to calculate their taxes twice every year when this is repealed.