Sen. Blunt touts federal tax reform efforts
During a visit to Patriot Machine in St. Charles, U.S. Sen. Roy Blunt touted the benefits of the tax reform proposals currently under discussion in Washington D.C.
Blunt said the bills being debated right now would cut rates, make taxes simpler and help the country become more competitive for business growth.
“There are two things we ought to be doing with tax policy and they both are focused on people who work hard for a living having more money to take home at the end of the week,” Blunt told workers at Patriot Machine. “The quickest way to get that done is to take less out of your check. And the other way to get that done is to have a higher pay to start with. In a growing economy there is going to be more competition for what you do and how you do it and that turns out to be good for the company you work for and it also turns out to be good for you.”
On Nov. 16, the U.S. Senate Finance Committee approved the Senate version of the tax reform bill, leading the way for full Senate consideration after Thanksgiving. The pro-growth package is designed to create jobs, give tax relief to businesses, increase workers’ paychecks and make U.S. job creators more competitive internationally.
As it stands now, the Senate bill includes:
- A permanent drop in the corporate tax rate from 35 percent to 20 percent
- A 17.4 percent deduction for “pass-through” income to aid smaller businesses
- For individuals, a temporary increase in the standard deduction to $12,000 ($24,000 for married couples)
Regarding the corporate tax rate, Blunt said the rate in the United States is no longer competitive and needed to be lowered.
“We last did a tax rewrite in 1986, more than a decade before I went to Congress. The 35 percent corporate rate was about in the middle of all the countries we competed with. Now it’s the very highest of all these countries we are competing with,” Blunt said. The goal is “not to be to the lowest rate, we’re trying to get back to the middle. 20-22 percent would be right in the middle of all the industrialized countries that we compete with.”
Dan Mehan, president and CEO of the Missouri Chamber of Commerce and Industry, joined the discussion at Patriot Machine and praised the work to address the problems in the federal tax system.
“We’re here to talk about something that’s broken and needs fixing and that’s our tax code,” Mehan said. “It holds back family owned businesses like Patriot and it holds back our economic growth in Missouri.”
For more information about federal progress toward tax reform, visit the U.S. Chamber of Commerce at: https://www.uschamber.com/tax-reform-now