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A “Realistic and Common Sense” Approach to Tax Reform

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Good morning, friends! And happy National Paul Bunyan Day! The statues of Paul Bunyan and Babe the Blue Ox in Klamath, California, are yuge.

Speaking of huge, Speaker Paul Ryan (R-WI) and House Republicans released their blueprint for tax reform last week.

Ryan Ellis, senior advisor for tax policy at CRN, evaluates the House Republican plan in a recent column in Forbes. He finds that the blueprint is “built for growth,” but “wisely does so in a way that doesn’t forget middle class working families struggling to get by, and in a way that passes a basic test of common sense and practicality.”

Ellis praises the plan for being “laser focused on getting every last drop out of potential economic growth, capital formation, and job creation.” To achieve greater growth, the plan would make the tax rates American businesses pay more competitive, lower double taxation of savings, implement full business expensing, and move toward a territorial tax system.

Ellis writes, “Taken together, these reforms will stop outsourcing and make the U.S. a magnet for jobs and capital.”

Two pro-family measures mark House Republicans’ blueprint. The plan would nearly double the standard deduction for a married couple from $12,600 to $24,000, and it would increase the child tax credit by 50 percent, from $1,000 to $1,500.

Ellis observes,

Under this plan, a family of four earning the median income ($80,000) would see their income tax bill decline by about $1000 (all of which comes from the child tax credit increase). A family of four making up to $50,000 would not see any income tax at all.

Ellis concludes his assessment of the plan for tax reform, writing that it’s “realistic and common sense.”

For his full evaluation of House Republicans’ blueprint for tax reform, check out Ellis’ column in Forbes (here).

Enjoy your Tuesday and National Paul Bunyan Day!