State’s delegates weigh in on plan to update tax code
U.S. Rep. Scott Tipton, R-Colo., was “encouraged” by a proposal to revamp the U.S. tax code and Colorado’s senators split on the outline, Republican Cory Gardner looking favorably on it and Democrat Michael Bennet calling for a “bipartisan approach.”
The House Republican Conference on Wednesday outlined the proposal, which reduces the corporate tax rate, reduces the existing seven tax brackets to three, and eliminates the deduction for state income taxes. It also preserves deductions for home mortgages and charitable contributions.
“The current tax code does not work for Americans,” Tipton said. “It is too complicated for individuals and families, punishes small businesses for investing to expand or create jobs, and puts U.S. companies at a disadvantage on the global stage.”
Bennet sounded a similar theme, calling for “fiscally responsible tax reform that will make our country more competitive and boost paychecks for workers and middle-class families,” but said the plan outlined by the House Republicans “does not come close to meeting these standards.”
Gardner, meanwhile, said the current tax code is “confusing and oversized,” and that Colorado interests would be “front and center” in the coming debate.
Under the proposal, the first $24,000 that a family earns, or the first $12,000 that an individual earns, will be free from the federal income tax. Currently, families with incomes of $18,650 or less pay 10 percent of their taxable income.
The proposal also would limit the tax rate applied to small and family-owned businesses to 25 percent.
The GOP framework would “make the U.S. the best place in the world to do business by setting the U.S. corporate tax rate just below the average corporate tax rate of the industrialized world,” Tipton said.
Bennet said the framework’s lower corporate tax rate, loopholes and repeal of the estate tax “can only mean two things: slashing taxes dramatically for the wealthy and increasing the national debt by trillions of dollars.”