Reed Sees Simpler, Fairer Future for Tax Filing Season
A day away from the April 15th tax filing deadline, Tom Reed says next year’s tax filing season could look very different if tax reform progresses through Congress. Reed pointed to Ways and Means Chairman Dave Camp’s recent tax reform draft as the type of generational-level reform needed to simplify the code and level the playing field for taxpayers.
“Families could be pleasantly surprised during future tax filing seasons when they have more money in their pockets and don’t have to spend as much time wondering how to file correctly,” Reed said. “By simplifying and making the code fairer, the average taxpayer would keep an additional $600 in their pocket and largely avoid the kind of time consuming, tedious paperwork taxpayers face now.”
Reed says the average taxpayer spends about 13 hours each year gathering all of the paperwork to file their taxes and 90 percent of taxpayers pay someone to prepare their taxes for them or purchase tax software to help. The tax reform draft would allow about 95 percent of filers to claim the standard deduction, saving time and money otherwise spent on outside tax preparers.
“At a time when Americans in every part of the country feel like they don’t have a fair shot at getting ahead, tax reform is a huge opportunity for everyone to get ahead,” Reed continued. “We need to take advantage of this opportunity to lower tax rates for every American and in turn, create more private-sector jobs. Chairman Camp’s tax reform draft is estimated to create 1.8 million new jobs – that’s an opportunity we absolutely cannot pass up.”
Reed sees broad support and broad agreement that the current tax code is in need of reforming. The U.S. tax code saw its last overhaul in 1986. In the nearly three decades since, the code has grown to 70,000-pages and riddled with loopholes and special exemptions.
“Tax reform is a common thread uniting both ends of the political spectrum,” Reed said. “There is broad agreement that you cannot defend the status quo tax code anymore. We need a carefully considered plan for this type of generational-level reform and we have laid the groundwork. Through the bipartisan working groups, dozens of Congressional hearings and tens of thousands of public comments, this is certainly not a bill we are going to pass to find out what is in it. The open and honest debate will continue.”