WASHINGTON, D.C. – Congresswoman Lynn Jenkins (KS-02), a member of the Ways and Means Committee that drafted the legislation, released the following statement after House Republicans introduced their tax reform legislation:
"After working on overhauling our tax code for several years, this is truly a significant moment. The release of this tax reform legislation is a major step towards fixing our broken tax code and making it fairer and simpler for all.
"This tax reform legislation shares our goals of ensuring that rates are cut for lower and middle income Americans, simplifying the tax system, and expanding American competition within the global economy.
"Among other things, this legislation includes several important pieces of tax reform such as: Permanently lowering tax rates for families and businesses, simplifying the tax code, and making sure that middle-class benefits like 529 college savings plans and the Child Tax Credit are improved. These are common sense solutions that will fix our tax code, and I am pleased to see that they have been included in the legislation.
"However, now that this bill has been released, I would encourage everyone to read it before falsely stating this tax reform legislation is the same thing as the 2012 Kanas tax cut package. While Kansas took the pass-through rate to 0 percent, we are dropping the rate to 25 percent along with implementing strong safeguards to prevent the type of tax avoidance that was possible in the Kansas plan. Specifically, this tax plan only allows a pass-through business to claim 30 percent of their income at the lower 25 percent rate, and the other 70 percent of their income remains at the top individual tax rate. Further, it calls for pass through entities that are considered ‘services businesses’ to be taxed at the higher income rate level, because their income is considered wages.
"Lastly, it is important to state that this is not the final version of the tax reform bill. This introduction starts the legislative process as the Ways and Means Committee will meet next week to debate the bill and then send it to the House floor for full debate. In the meantime, I encourage everyone to read the legislation and contact my office with your thoughts so I can best represent you in Congress.
"I look forward to collaboration with my colleagues in the Senate and across the aisle to produce a bill that paves the way for tax relief and economic prosperity."
Read the tax reform legislation here: https://waysandmeansforms.house.gov/uploadedfiles/bill_text.pdf