Commentary: Congressman Steve Pearce today released the following statement after the Republicans introduced their plan to reform America’s tax code:
“Small businesses are the cornerstone and families are the backbone of our state. For too long, our nation’s complex, antiquated, and one-sided tax code has caused stress, undue burden, and hard-earned money to ensure compliance. This is simply wrong, and must change not only for the success of our communities, but for the success of New Mexico and the nation. The tax framework released today has the potential to finally bring the relief that has long been needed. Done right, it will strengthen the middle-class and working-class, ease the burden and stress on families, make small businesses a priority, and put America back on the competitive global playing field.
This framework simplifies the tax code for businesses, doubles the amount families and individuals are able to deduct, and has the potential to lower rate for individuals and families throughout the nation with a straightforward tax rate. These changes will allow everyday middle-class families to spend less on taxes and tax preparation allowing those hard-earned dollars to be saved and used where needed. Even more, this framework will help businesses expand, but also allow them to create jobs in communities with desperate for growth and services.
New Mexicans have struggled long enough to find good-paying jobs and deserve to keep more of their hard-earned money. I look forward to working with my colleagues and the Administration to reform America’s tax code to make New Mexican businesses and families a priority.”
To accomplish these tax goals for businesses, the plan restructures the maximum tax rate for small, family-owned businesses to 25% and reduces the corporate tax rate to 20%. It also contains additional business deductions and credits to incentivize domestic manufacturing and production, with a new marginal rate at the lowest we’ve seen it in nearly 80 years.
Click here to view the full tax reform blueprint.