Congressman Dave Camp (R-MI), the chairman of the House Ways and Means Committee, said he hopes to cut the tax rate for the richest individuals and corporations to 25 percent to help spur job growth.
The top U.S. tax rate has been 35 percent for both individuals and corporations since 2001, when President George W. Bush pushed for tax cuts. The previous rate, which President Barack Obama has proposed the US returns to, was 39.6 percent.
“There is no doubt that today’s tax code is too complex, too costly and takes too much time to comply with,” Rep. Camp, who heads the House committee charged with writing tax legislation, said in a statement. “Add to that the unpleasant reality that America will soon have the highest corporate tax rate in the world, and it is no wonder that the current economic recovery has been far more muted than in past recoveries.”
Along with Senate Finance Committee Chairman Max Baucus (D-MT), Rep. Camp has directed the Joint Committee on Taxation (JCT) to investigate ways the Congress can enact comprehensive tax reform.
Rep. Camp told the Wall Street Journal that the current tax code is “too burdensome for families and employers of all sizes to comply with.” He said the tax code needs to promote job growth and would also like to see many popular deductions cut or eliminated.
“Congress must take a comprehensive approach to tax reform so that we address the needs of all job creators – big and small,” he said. “I look forward to using this additional research to identify the pathways to the tax policies that promote the job creation our country needs.”
According to the Wall Street Journal, lowering taxes on the wealthiest Americans to 25 percent would cost $2 trillion over a decade.