WASHINGTON, D.C. — U.S. Senator Shelley Moore Capito (R-W.Va.) is “intrigued” by the Trump Administration’s tax reform blueprint released this week, one that White House officials have indicated they’d like to see finalized before the end of 2017.
“I think it goes to a lot of what, I think, are big time weaknesses in the tax code and things that we’ve been talking about for 16 years,” Capito said during an appearance on Thursday’s MetroNews “Talkline.”
“There’s a lot of really good things in here that could stimulate and would stimulate growth and we’re not going to have higher wages and broader employment until we have the certainty of our tax code, corporately and individually.”
In terms of effects on individuals, the outline proposes reducing the existing seven tax brackets to three at 10 percent, 25 percent and 35 percent; doubling the existing standard deduction and providing tax relief for families with child and dependent care expenses.
Currently, the ceiling for individual tax rates is set at 39.6 percent. Individuals can deduct $6,350 from their taxable income now, while married couples can deduct $12,700.
The tax reform outline calls for simplification of the tax code by eliminating targeted tax breaks that benefit wealthier taxpayers; protects the popular home ownership and charitable gift tax deductions; repeals the Alternative Minimum Tax; ends the death tax and pulls a 3.8 percent additional capital gains tax on small businesses and investment income implemented under former President Barack Obama to fund the Affordable Care Act.
For businesses, the Trump Administration is proposing taking corporate tax rates from 35 percent to 15 percent; utilizing a territorial tax system; implementing a one-time tax on trillions held overseas and eliminates tax breaks for special interests.
Few other details about the outline were immediately available.
Still, Capito saw reasons to be optimistic.
“I think the complexity in the tax code is enough to put everybody’s hair on fire, so the simplification that he gets to in this tax bill by moving to three rates, but also by eliminating a lot of deductions and loopholes is going to be welcomed by individual taxpayers,” said Capito.
In May, Trump Administration will be seeking input on the outline from stakeholders as part of overall work toward potential passage by both U.S. Senate and U.S. House of Representatives.