Bradley Byrne: A tax code that works
Each April, Americans across the country face great frustration and inconvenience in filing their taxes. Fortunately, this Tax Day marked the last time Americans would file their taxes under the old tax code. Thanks to passage of the Tax Cuts and Jobs Act, Americans will now have a simpler and fairer tax code. I was proud to work with President Trump to reform our tax code and make the process easier for taxpayers. Starting next year, the Tax Cuts and Jobs Act will bring Americans relief when filing their taxes under a more streamlined, straightforward tax code. However, making the overall filing process simpler and more convenient was just one of the many ways we worked to create a tax code that benefits and works for the American people. One of the most important reforms under the new tax code is the doubling of the standard deduction. This provision increases the standard deduction to $12,000 for individuals and $24,000 for married couples. Combined with new lower tax rates, almost every Alabamian should see a tax decrease. Also important, the new tax code prioritizes American families by doubling the Child Tax Credit from $1,000 to $2,000 per child. It is no secret that raising a family is not cheap; so, this increase provides additional support for families struggling to pay for childcare and other necessary expenses associated with parenting. To provide even more support for families, the bill preserves the Child and Dependent Care Tax Credit, as well as the Adoption Tax Credit. Even more, the bill makes improvements to saving options for education by allowing parents to use 529 accounts to save for elementary, secondary, and higher education. Most people will not have to wait until the next tax season to see the impact of the Tax Cuts and Jobs Act. Already, many hardworking Alabamians are seeing more money in their paychecks each month. That means your hard-earned money is ending up back in your pockets, rather than the coffers of the federal government. Tax reform has also helped spur overall economic growth. Our bill helps to level the playing field for American businesses, creating new job opportunities and finally causing wages to rise after years of stagnation. Many businesses have also handed out bonuses and improved benefits to their workforce. Since passage of the Tax Cuts and Jobs Act, I have had the pleasure of personally handing out bonus checks at multiple businesses in Southwest Alabama. Trust me, these workers were thrilled with the extra money. We aren’t stopping now either. The House passed a package of bills last week to help cut down on identity theft and to hold criminals accountable for IRS scams. It is important that these crooks be punished for trying to defraud hardworking Americans, including our nation’s senior citizens. Equally important, the House also passed bills to make the IRS more efficient, effective, and accountable. The IRS should be a customer-friendly organization that responds to the questions and concerns of the American people. In the past four months, we have seen tremendous growth right here in Southwest Alabama because of the Tax Cuts & Jobs Act. From our small business owners handing out bonus checks to our single-income families taking home extra money in their paychecks, evidence shows that allowing Americans to keep more of their hard-earned money is a huge boom for our economy. As we bid farewell to an old, outdated tax code, Americans can rest easy knowing they have a simpler, fairer tax code to work with in the future. • • • Bradley Byrne is a member of U.S. Congress representing Alabama’s 1st Congressional District.
Mike Rogers: Making our broken tax code simpler and fairer for East Alabama
As most folks across East Alabama have seen in the news lately, President Donald Trump and Congress are working together to help make our broken tax code fairer and simpler. The House and Senate have both passed the Fiscal Year 2018 Budget Resolution which clears the path to start tax reform and it has been quite some time since this has happened. Guy Hunt was elected first Republican Governor of Alabama in over 100 years, Auburn’s Bo Jackson was first pick of the NFL Draft by the Tampa Bay Buccaneers, The Bangles were topping the charts, The Oprah Winfrey Show made its first national broadcast, Teddy Ruxpin was every child’s dream toy and the TV show “Dallas” brought Bobby Ewing back from the dead. That was the last time the tax code was reformed – the year was 1986. These are all great memories to look back on, but it’s amazing how much has changed since we’ve done anything on tax reform. Now Congress will begin the overhaul by simplifying our tax code. Hard-working American families deserve to take home more of their hard-earned paychecks, and President Trump’s tax plan will help make that happen. The plan will also give families more time together by making it easier to file. Instead of spending countless hours on filing taxes, the plan will make filing as easy as filling out a form the size of a postcard. The plan will give families back that time and money spent on preparing for Tax Day. The tax plan will also help our small businesses, which are the backbone of our local economies, by lowering tax rates and leveling the playing field. Closing special interest loopholes and rewarding hard work should help encourage investment back in America and help bring more good-paying jobs back home. I support President Trump’s efforts to reform our broken tax code to make things easier on the hard-working families across East Alabama. Learn more about the plan at fairandsimple.gop and sign up for SMS notifications on tax reform by texting “TAX REFORM” to 50589. I want to hear from you on this or any issue. ••• Mike Rogers is a member of U.S. Congress representing Alabama’s 3rd Congressional District. Sign-up for his e-Newsletter by visiting www.mikerogers.house.gov. To stay up to date, you can also like him on Facebook at Congressman Mike D. Rogers, follow him on Twitter, Pinterest and Instagram at RepMikeRogersAL, on Tumblr at www.repmikerogersal.tumblr.com.
Budget deficit hits $666 billion, up $80 billion as tax debate kicks off
The federal budget deficit rose to $666 billion in the just-completed fiscal year, a spike that comes as Republicans are moving to draft a tax code rewrite that promises to add up to $1.5 trillion to the national debt over the coming decade. The sobering deficit numbers, released Friday by the Treasury Department and the White House budget office, followed Senate passage Thursday night of a 10-year budget plan that shelves GOP concerns on deficits and debt in favor of a tax overhaul. Still, House Speaker Paul Ryan of Wisconsin insisted Friday on “CBS This Morning”: “We’re Republicans. We’re sensitive to the deficit.” President Donald Trump and his GOP allies on Capitol Hill promise this year’s tax legislation will spark a burst of economic growth – and hope it will pay big political dividends for their party. Friday’s budget figures represent an $80 billion jump over last year’s $585 billion deficit, which itself was way up over the previous year’s $438 billion. The administration says the sour deficit report shows a need to pass the tax overhaul measure. “Through a combination of tax reform and regulatory relief, this country can return to higher levels of GDP growth, helping to erase our fiscal deficit,” said Treasury Secretary Steven Mnuchin. “These numbers should serve as a smoke alarm for Washington, a reminder that we need to grow our economy again and get our fiscal house in order. We can do that through smart spending restraint, tax reform and cutting red tape,” said White House budget director Mick Mulvaney. Democrats argue that the GOP should work with them on a bipartisan approach to revamping the tax code without adding to the deficit. “With the deficit as large and growing as quickly as it is, Republicans pursuing a reckless plan that would blow a huge hole in the deficit and put Medicare and Medicaid at risk is the height of irresponsibility,” said Senate Minority Leader Chuck Schumer, D-N.Y. Mulvaney drafted Trump’s May budget plan, which promised to balance the budget within a decade, but only through politically unrealistic cuts and rosy assumptions of economic growth. But Trump hasn’t promoted the effort, which was quickly shelved by the GOP in Congress. The White House in July revised its short-term deficit outlook significantly to warn of worsening deficits. Since then, a bad hurricane season has forced the government to spend billions in disaster relief. The deficit issue has largely fallen in prominence in Washington in recent years, and Trump doesn’t speak of the issue. He has ruled out cuts to Social Security and Medicare. Earlier, gridlock between former President Barack Obama and congressional Republicans took hold after failed attempts at budget deals. Most economists don’t believe the deficit is very worrisome in the short term, though it is creeping above 3 percent of the size of the economy, a threshold that bears watching. The picture over the long run is more problematic, at least under a conventional view that if deficits continue to rise and the national debt grows, government borrowing will “crowd out” private lending and force up interest rates. And if interest rates go up, the government would have to pay much more to finance the more than $14 trillion in Treasury debt held by investors. Republished with permission from the Associated Press.
Bradley Byrne: A tax cut for working families
A lot has changed in our country since 1986. Ronald Reagan was President, Top Gun was a hit at the box offices, and Matlock had just premiered on television. One thing that hasn’t changed since then? The tax code. 1986 was the last time we had meaningful tax reform in this country, and that is a shame. The current tax code does not match the realities of today’s economy or the needs of modern Americans. Thankfully, a new tax code is on the horizon. Last week, President Trump and Republicans in Congress unveiled our framework for a new, simplified tax code. Under our framework, Americans will keep more of their hard earned money in their pockets, small businesses will be encouraged to grow, and the economy will have what it needs to finally experience real growth again. President Donald Trump put it best when he said that “it’s time for Congress to provide a level playing field for our workers, to bring American companies back home, to attract new companies and businesses to our country, and to put more money into the pockets of everyday hardworking people.” That is exactly what our plan would do. First, our plan would move from the current seven tax brackets to essentially four brackets: 0%, 12%, 25%, and 35%. The 0% bracket would result from doubling the standard deduction to $24,000 for married taxpayers filing jointly or $12,000 for single filers. This change is fundamental to a fairer, simpler system. Additionally, our plan calls for the elimination of special interest tax breaks that primarily only help the well-connected and elite. A complicated tax code full of loopholes and confusing provisions does nothing to benefit the average American family, and we must make things as simple as possible. Importantly, our plan will maintain important tax incentives for home mortgage interest, charitable giving, retirement, and education. The plan also increases the child tax credit to make it available to more working families. With these changes, our plan will allow for a simple “postcard” tax filing for the vast majority of Americans. It will no longer take you countless hours or require you to hire outside help to simply file your taxes. As President Trump has said, these changes will result in a “Middle Class Miracle.” Hardworking people across American will have more money in their pockets, which they can use to benefit their family and spark greater economic growth. Our plan also includes a provision important to family farms and small businesses. By repealing the estate tax, also known as the death tax, we will no longer punish families when someone dies, and they want to leave their business or farm operation to a loved one. Sadly, some on the liberal left has already started spreading false and misleading information about our pro-growth tax plan. I want to ensure you that our tax plan is designed with working Americans in mind, first and foremost. In fact, a key goal of our plan is to eliminate provisions that only benefit the well-connected and well-off. Over the coming weeks, I will continue to share more information with you about how our tax plans will spur economic growth and benefit American families. Next week, we will take a look at how our tax plan will open the United States up for greater economic competitiveness on the world stage and bring jobs back to our country. In the meantime, I encourage you to read the tax reform framework for yourself online at FairAndSimple.gop. As you legislative process moves forward, I welcome your input and feedback. It is time we get the job done and give Americans the tax cuts they deserve and revitalize the American economy. • • • Bradley Byrne is a member of U.S. Congress representing Alabama’s 1st Congressional District.
Paul Ryan promises to overhaul tax code this year despite hurdles
House Speaker Paul Ryan is promising to overhaul the tax code by the end of the year despite political divisions among Republicans and a crowded legislative agenda for Congress. Ryan is due to give a speech on tax reform Tuesday afternoon to the National Association of Manufacturers. In excerpts released by his office, Ryan says Republicans, who control Congress and the White House, have a rare opportunity to re-write the tax code for businesses and individuals. “We are going to get this done in 2017. We need to get this done in 2017. We cannot let this once-in-a-generation moment slip,” Ryan says in prepared remarks. “Transformational tax reform can be done, and we are moving forward. Full speed ahead.” According to Ryan’s office, the Wisconsin Republican will “warn against accepting half measures or believing there is a path to reform without obstacles and political challenges.” That’s an apparent jab at a growing number of Republicans who simply want to cut taxes rather than simplify the tax system and make it more efficient. Ryan’s office says he will make the case for permanent tax reform – rather than a temporary tax cut. The obstacles in Congress are many. Ryan supports a new tax on imports to help finance a lower overall tax rate for corporations, and to encourage U.S. companies to stay in the United States. The tax, however, has no support in the Senate and is vigorously opposed by retailers who worry that it will increase the cost of consumer goods. Ryan’s office said, “He will not litigate the issues currently being resolved between the House, Senate, and (Trump) administration, but he will describe the important components of any reform.” Republicans are planning to pass a tax package under a procedure in which they need only a simple majority in the Senate – preventing Democrats from blocking it. Under the procedure, the tax package cannot add to long-term budget deficits. That means for every tax cut, there has to be a tax increase, at least over the long term. There’s more. In order to take advantage of the procedure, Republicans in the House and Senate must pass a budget resolution. That won’t be easy because there are big disagreements among Republicans over spending levels for the military and for domestic programs. Also, the legislative calendar is crowded with other hard-to-do initiatives. The Senate is currently grappling with how to repeal and replace President Barack Obama‘s health care law. The House already passed a bill but it was not well-received in the Senate. Congress is facing an Oct. 1 deadline to fund the government, and sometime this fall, Congress will have to extend the authority of the federal government to borrow money or risk an unprecedented default. All of these issues are heavy political lifts that will take time and political capital to resolve. Republished with permission of The Associated Press.
Bradley Byrne: Five things to watch in 2017
In 2017, Republicans will have control of the White House, the Senate, and the House of Representatives. This is a rare situation that has happened only 16 times the past 100 years. Under a unified Republican government, there is great potential for important reforms. Here are five areas where I hope to see progress in 2017: Health Care Relief – Far too many American families are suffering under the ill-conceived Affordable Care Act. A top priority must be to repeal this disastrous law and begin moving forward with health care reforms that lower costs, boost competition, and spur innovation. Our reforms must center on free-market principles that do not put the federal government between a patient and their doctor. Any updates to our nation’s health care law must ensure that people with pre-existing conditions have access to affordable health and strengthen Medicare for our nation’s seniors. A Stronger Military – Under President Barack Obama, our military has taken a hit and that trend must be reversed. Despite these funding cuts, we continue to ask our military men and women to do more and more. Under President-elect Donald Trump, I am hopeful we will grow our military in a way that helps project peace through strength. This includes building up our Navy’s fleet with an ultimate goal of at least 350 ships. As we grow our military, we must also focus on spurring innovation to ensure we have the most advanced technology and tools available. Regulatory Reform – Unnecessary and costly government regulations are making it harder for businesses to grow, resulting in higher costs for American consumers. These regulations impact everything from energy to agriculture to labor laws. Some of these regulations can simply be blocked or repealed by the Trump Administration. Others will require action from Congress. President-elect Trump has already suggested that he will remove two regulations for every one regulation introduced. This type of regulatory reform will go a long way toward boosting economic growth. Immigration Enforcement – Over the last eight years, the Obama Administration has consistently turned a blind eye to our nation’s immigration laws. Instead of enforcing the laws on the books, they have looked for ways around the law. Well, that will change come January 20th. Having a strong immigration enforcement system is critical to our national security, and it must be a top priority. This includes securing our border and halting the flow of illegal immigrants across the border. We must also look at other parts of our immigration system to ensure American workers are being treated fairly. A Simpler Tax Code –The current tax code is far too complicated and confusing, and I have long been an advocate for wholesale tax reform that lowers rates for American families. Tax reform should make completing your taxes as simple as filling out a postcard sized form. We should also bring down our corporate tax rates, which are among the highest in the world in an effort to spur job creation and keep businesses in the United States. Tax reform is a key part of our efforts to grow the economy. Certainly, this is not an all-inclusive list and unified Republican government alone will not be enough to achieve these reforms. Under the current Senate rules, most legislation requires 60 votes in order to pass, and Republicans only have 52 Senators. I hope Senate Democrats will agree to work across the aisle to find common ground and advance these reforms. Our top priority should always be to focus on policies that benefit the American people. By doing that, I believe we can help restore faith in government and make life easier for all Americans. • • • Bradley Byrne is a member of U.S. Congress representing Alabama’s 1st Congressional District.
House Speaker Paul Ryan proposes simpler tax code
House Republicans led by Speaker Paul Ryan unveiled a plan for a simpler tax code, the sixth and last installment of a GOP agenda designed to be a policy counterpoint to the personality-driven campaign of Donald Trump. Ryan and other Republicans announced the plan at a news conference Friday morning. The proposal would lower tax rates for both families and businesses, although it falls short of the 25 percent top rate for individuals that Ryan promised not long ago. Instead, the tax reform plan proposes a 33 percent top tax bracket instead of the current top rate of 39.6 percent restored by President Barack Obama in a 2013 victory over Republicans in the wake of his re-election. The Ryan plan also lacks the detail required to measure whether it maintains the current distribution of the tax burden by income range. The plan won’t face a vote this year but, like other elements of Ryan’s agenda, provides a template for potential action next year. “For families and individuals, the new tax system will simplify and lower tax rates. It also will provide for reduced but progressive tax rates on capital gains, dividends and interest income,” the proposal reads. “The approach reflected in this blueprint will be simple enough to fit on a postcard for most Americans.” Individual filers would retain tax breaks for mortgage interest, charitable giving and retirement savings in a decision that reflects the sweeping popularity of such measures. The measure also promises business and international tax reforms to make U.S. companies more competitive with overseas companies, including lowering the corporate tax rate from 35 percent to 20 percent. In exchange, businesses would lose a host of write-offs. Tax reform is a longtime promise of Republicans, and the code has gotten far more complex in the three decades since the landmark 1986 tax overhaul. But changing the code pits powerful interests against one another and exposes ideological rifts among Republicans and between Republicans and Democrats. The measure assumes the proposal would generate economic growth that would, in turn, boost revenues. Such “dynamic” effects permit policymakers to promise even lower tax rates that would not add to the budget deficit. Republished with permission of The Associated Press.
National survey ranks Alabama tax code 33rd most fair
A new report released Monday by online financial services and survey firm WalletHub says Alabama ranks just behind the national average when it comes to the fairness of its state and local taxes. The survey evaluated the taxes levied by all 50 states – broken down by income, excise, sales and “other” taxes – and how they are levied on people of varying income brackets and compared that to the ideal system of taxation, gathered by asking respondents the question, “In thinking about the fairest possible tax system, what percentage of income do you think households at each income level should pay in state and local taxes?” The analysis showed Alabama’s tax code to be about equally as fair as the going rates in the U.S. The state gained high marks for its low sales and excise taxes, which are generally deemed regressive because poor and middle-class taxpayers generally shoulder most of those burdens. Alabama was 40th most reliant on such taxes for state revenue, plus 37th on “other taxes” like licensure and other miscellaneous fees, which experts similarly agree unfairly burden those least able to afford it. On the other hand, Alabama was dinged for its relatively high dependence on property taxes – the survey indicated the Yellowhammer State soaks its homeowners more than all but five other states. Its No. 33 ranking puts the state at slightly more fair than the states of New York, Pennsylvania and southern neighbor Kentucky, which came in at No. 34, and slightly less fair than Rhode Island, South Dakota and Louisiana. Montana took top honors overall according to the report, being docked only for relatively high sales taxes in the state. Oregon, South Carolina, Delaware and Idaho rounded out the top five, though their paths to the top diverged significantly. Delaware and Oregon, for instance, have low or no state income tax whereas Montana and South Carolina’s fairness rating was buoyed by low property taxes. Alabama’s neighbors in Florida ranked No. 45 on the list, pulling up the rear along with Illinois, Arkansas, Hawaii, Georgia and Washington. The non-scientific survey used results from an online poll of 1,050 Americans.
