On Thursday, December 11th, 2014 House Ways and Means Committee Chairman Dave Camp, R-Mich. introduced H.R. 1 – Tax Reform Act of 2014. The proposal formalizes the tax reform discussion draft released on February 26, 2014, without modifications.
“I hope that the formal introduction of this proposal in the House today will help spur further action on this critical issue in the 114th Congress,” said Camp.
Camp said that at its core, the Tax Reform Act of 2014 is about “making the tax code simpler and fairer for hardworking taxpayers. I believe every taxpayer should be able to do his or her taxes without fear that someone with better accountants or lawyers is getting a better deal.” He added that the legislation does that by ensuring that virtually all taxpayers would pay the least amount of taxes without having to keep track of all receipts and records and live in fear of an IRS audit.
Camp emphasized that his legislation makes the Code “more effective and efficient ” by getting rid of narrowly targeted provisions to lower tax rates across the board. “This will enable small and large businesses alike to expand operations, hire new workers, and increase benefits and take-home pay,” he said.
Camp cited an analysis by the independent, nonpartisan Joint Committee on Taxation (JCT), which shows that the Tax Reform Act of 2014 does the following without increasing the budget deficit:
* Creates up to 1.8 million new private sector jobs;
* Allows roughly 95 percent of filers to get the lowest possible tax rate by simply claiming the standard deduction (no more need to itemize and track receipts); and
* Strengthens the economy and increases Gross Domestic Product (GDP) by up to $3.4 trillion (the equivalent of 20 percent of today’s economy).
Provided by CCH