For Immediate Release: July 18, 2016
Contact: Meilia Picquet (475) 227-9721
Congressional Nominee Daria Novak Pledges Support for Ryan/Brady “Prosperity-With-Equity” Tax Reform Plan
Madison, Connecticut – “ I hereby pledge my full support to achieve the enactment of the Ryan/Brady Tax Reform Plan to provide a tax cut for everyone, make America internationally competitive thereby reviving our export industries and the million plus jobs they will create, and dramatically growing the American economy while having only a trivial impact on the federal deficit. It will allow 95% of taxpayers to fill out their annual tax return on a postcard, saving billions of dollars in tax preparation fees and millions of hours of misery in pointless record keeping,” said Novak.
The nonpartisan Tax Foundation, Ryan/Brady states it “Consolidates the current seven tax brackets into three, with rates of 12%, 25%, and 33%.”
• Increases the standard deduction from $6,300 to $12,000 for singles, from $12,600 to $24,000 for married couples filing jointly, and from $9,300 to $18,000 for heads of household.
• Eliminates the personal exemption and creates a $500 non-refundable credit for adult dependents.
• Increases the Child Tax Credit to $1,500 per child, limits the refundability of the credit to $1,000, and raises the phase out threshold for the Child Tax Credit for married households from $110,000 to $150,000.
• Eliminates all itemized deductions besides the mortgage interest deduction and the charitable contribution deduction.
• Eliminates individual alternative minimum tax and reduces the corporate income tax rate from 35% to 20%.
• Taxes income derived from pass-through businesses at a maximum rate of 25%.
• Allows the cost of capital investment to be fully and immediately deductible.
The Tax Foundation finds:
On a dynamic basis, all taxpayers would see an increase in after-tax income of at least 8.4%.…
The House Republican tax plan would reform both the individual income tax and convert the corporate income tax into a destination-based cash flow tax. This plan would significantly reduce the cost of capital and reduce the marginal tax rate on labor. These changes in the incentives to work and invest would greatly increase the U.S. economy’s size in the long run, boost wages, and result in more full-time equivalent jobs. On a static basis, the plan would reduce federal revenue by $2.4 trillion, most of the revenue loss being from one-time transitional costs. However, due to the larger economy and the significantly broader tax base, the plan would reduce revenue by $191 billion over the next decade.
Authorized and Paid for by Daria Novak for Congress