VIDEO: Smith: “The Time for Tax Reform is Now.”
Congressman Adrian Smith (R-NE) spoke on the House floor today to highlight the benefits of tax reform and urge passage of H.R. 1, the Tax Cuts and Jobs Act. A vote by the full House is expected tomorrow.
Smith’s remarks:
Mr. Speaker, Chairman Brady, thank you for the time and for your leadership as we continue our efforts to pass this historic legislation.
Mr. Speaker, after nearly seven years of work in the Ways and Means Committee – and more than 31 years since our last true tax reform, many hearings along the way – it is time to pass historic, comprehensive tax reform.
Our current tax code is antiquated, complex, and ignores many of the improvements in competitiveness which have been adopted by every other major economy worldwide.
The time for tax reform is now.
Others have already outlined many of the highlights of this bill, but I think they warrant mentioning again.
Simplified compliance and rates for individuals and families means more than 95 percent of Americans will be able to file their returns on a postcard.
Lower rates for small businesses recognize the important role they play as job creators in our economy.
A 20 percent top corporate tax rate and transitioning to a territorial system will ensure our businesses remain competitive with the rest of the world.
In addition to lower rates, expanded expensing will further encourage entrepreneurs to invest in capital to grow their businesses.
And full repeal of the death tax, including the continuation of stepped-up basis, will ensure our nation’s farmers, ranchers, and small manufacturers can continue creating opportunity for generations to come without the threat of double taxation.
Our tax code shouldn’t reward businesses and investors because they hired accountants and lawyers to help them avoid taxes, and the estate tax does exactly that right now.
I think it is equally important to praise what the bill leaves alone in the tax code.
With our impending entitlement crisis, we want Americans to save everything they can for retirement. This bill leaves those incentives intact.
It also excludes a proposal, which had initially been included in the bill, to apply self-employment taxes to rental income. This could have had serious repercussions for ag land rental and I am glad it was dropped.
And I particularly appreciate how this bill continues the deductibility of state and local taxes for businesses, including farmers and ranchers. U.S. producers have made great strides in increasing production on a per-acre basis, but land remains a primary input as they work to feed the world. Ensuring the property tax on land in production remains deductible as a business cost is vital to their continued success.
This is the moment to finally provide the tax relief Americans have been asking for – and to make our country competitive again. I urge the passage of this pro-growth bill, and I yield back the balance of my time.