TIA encouraged by GOP tax framework
BOWIE, Md. — The Tire Industry Association (ITA) said it is encouraged by the Republicans' tax reform framework, especially since it includes a repeal of the estate tax and favorable language on the Work Opportunity Tax Credit.
"TIA is happy to report that the joint tax reform framework released last week by the White House, House and Senate includes full repeal of the estate tax," the association said in the Oct. 2 issue of its Weekly Legislative Update.
The nine-page GOP document, titled "Unified Framework for Fixing Our Broken Tax Code," states four main principles for tax reform:
- Make the tax code simple, fair, and easy to understand;
- Allow Americans to keep more of their paychecks;
- Level the playing field for American businesses and workers; and
- Bring back trillions of dollars kept offshore to reinvest in the U.S. economy.
Among other things, the GOP tax plan would raise standard deductions; reduce the seven current tax brackets to three; increase the Child Tax Credit; and eliminate most itemized deductions except for home mortgage interest and charitable contributions.
As well as repealing the estate tax, the GOP tax plan would reduce the gift tax to 35 percent.
The tax framework has received a mixed reaction, with some sources praising it and others saying it would actually raise taxes on middle- and working-class families while giving an unprecedented tax cut to the wealthy.
TIA is one of 153 members of the Family Business Coalition, an organization that supports full repeal of the estate tax.
The Work Opportunity Tax Credit allows employers a tax deduction for part of the first-year wages of new hires coming from communities designated by the federal government as being underprivileged.
TIA noted this language from the GOP tax document: "The framework retains tax benefits that encourage work, higher education and retirement security. The committees are encouraged to simplify these benefits to improve their efficiency and effectiveness."
TIA said it would use this opening to work for low-cost improvements it has long sought for veterans, people with disabilities, foster youth and jobs in private non-profit sectors, such as health and education.
The association said it hoped the Republicans would work in partnership with the Democrats to create the tax reform package.
"Allowing Dems a voice runs against the grain of how Ways and Means has operated the past eight years," it said. "It's important how the bill writing is organized. WOTC is bipartisan. We're stronger when Democrats have a voice."
Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].