Trible favors

Trible favors

tax reform

Senator Paul Trible reported that both the Senate and the House of Representatives have now passed tax reform measures and a conference committee is meeting to reconcile the differences in the two bills.

The Senate tax reform measure establishes a simpler and fairer tax system and one where everyone will pay lower tax rates.

Today, there are 15 individual tax brackets, Sen. Trible said. Under the Senate bill there would be just two — 15 percent and 27 percent. More than 80 percent of America’s taxpayers will pay 15 percent and no more. Six million working poor will pay nothing. “And, there is a tough minimum tax on wealthy individuals and corporations that will ensure that everyone pays their fair share,” the Senator added.

“Most importantly, by eliminat ing a vast array of deductions, exemptions and tax credits, it is possible to substantially reduce tax rates for everyone. Lower tax rates will give all taxpayers a much greater incentive and reward for hard work, savings, productivity, risk taking — the kinds of activities that create jobs and economic growth and prosperity.”

Sen. Trible predicted that in the give and take of the conference committee, the House will move toward the Senate position. Of course, he added, the House members will push for higher tax rates, and to the extent that there is some upward movement, the conferees will be able to restore full participation in Individual Retirement Accounts and provide fairer rules of transition.

“I absolutely favor retaining IRAs,” Sen. Trible affirmed. “Tens of millions of Americans contribute to IRAs each year. They encourage people to save and invest for their own future security and, in turn, provide a pool of savings that is available to fuel economic growth.’

“I believe the Congress will approve a tax reform measure and the President will sign it this year — perhaps as early as this summer, he concluded.

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