A Nebraska Congressman will be in the middle of tax reform efforts and says he’s pleased with the outline of the proposal.
Congressman Adrian Smith has been working on federal tax reform for years as a member of the House Ways and Means Committee.
“It’s exciting to see things kind of come together,” Smith tells Nebraska Radio Network. “Now, it’s still a heavy lift. We have a ways to go. We still have some details to work out, but the framework that was announced this week I think is a tremendous step in the right direction.”
The tax reform proposal outlined by President Donald Trump would reshape both corporate and individual income taxes.
Smith says cutting the corporate tax rate from 35% to 20% would make United States corporations more competitive. That cut combined with incentives for corporations to invest in new equipment and make other capital expenditures, plus other corporate tax changes could reverse the trend of taking production to other countries.
On the personal income tax side, popular tax deductions for mortgage interest rates and charitable deductions would remain. A number of others would be eliminated. The current seven individual income tax brackets would be folded into three: 12%, 25%, with a top individual tax rate of 35%. The proposal would roughly double the standard deduction. The proposal seeks to get rid of the estate tax, called the death tax by its critics, as well as the alternative-minimum tax.
An outline has been sketched. Details need to be hammered out. So, now the work, such as within the Ways and Means Committee, begins.
“It’s hard to pass and it should be, because it is such a big issue,” Smith says. “But, the time is very soon to get this done. Let’s work out the details and focus on bringing people together for more opportunity.”
AUDIO: Brent Martin reports [:50]