Congressman Dave Camp (R-MI), Chairman of the powerful Ways and Means Committee, recently released draft legislation dubbed The Tax Reform Act of 2014 (TRA 2014). TRA 2014 aims at job growth, a simpler and fairer tax code, and putting more hard-earned income back into the hands of taxpayers. Laudable goals all, but the bigger news is that TRA 2014 would NOT increase the budget deficit based upon analysis by the non-partisan Joint Committee on Taxation (JCT).
Time and space make it impossible to discuss all of TRA 2014 in this forum and as with many tax reform acts, there will be winners and losers. Here are a select few of the most dramatic forecasts by the non-partisan JCT.
- More cash to the people
- An average middle class family of four would receive $1,300 more annually.
- New Jobs
- As many as 1.8 million new jobs could be created.
- Taxes Simplified (Really!)
- Up to 95% of taxpayers would simply claim the higher standard deduction rather than tracking and documenting itemized deductions.
- The Internal Revenue Code would shrink by an historic 25%.
- The dreaded Alternative Minimum Tax would be eliminated.
In a political era tarnished too often by partisan discord, TRA 2014 absolutely shines as cooperative statesmanship. Ranking Committee Member Sander Levin (D-MI) joined Chairman Camp (R-MI) in creating 11 separate bipartisan tax reform working groups. All told, over 30 separate Congressional hearings were held in developing TRA 2014. The House Ways and Means Committee invites comments from the general public. Follow the link below for more information on TRA 2014.
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