On Thursday, Senate Majority Leader Mitch McConnell, House Speaker Paul Ryan, Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-UT), and House Ways and Means Committee Chairman Kevin Brady (R-Texas) issued a joint statement about tax reform, stating that reforming the tax federal tax code is the “single most important action we can take to grow our economy and help the middle class get ahead.”
“For the first time in many years, the American people have elected a President and Congress that are fully committed to ensuring that ordinary Americans keep more of their hard-earned money and that our tax policies encourage employers to invest, hire, and grow,” federal leaders said in the statement.
According to the statement, the group, under the leadership of the White House, has met with hundreds of business and grassroots groups to gather ideas on a tax reform solution.
Among the list of priorities listed by the group are lower taxes on small businesses and all American companies so they can better compete in the global marketplace.
“The goal is a plan that reduces tax rates as much as possible, allows unprecedented capital expensing, places a priority on permanence, and creates a system that encourages American companies to bring back jobs and profits trapped overseas,” the statement reads.
In response to the statement, Kentucky Chamber President and CEO Dave Adkisson applauded the new momentum behind a tax reform plan.
“It now looks like the U.S. House, Senate and White House are ready to move forward with major federal tax reform. The joint statement from Senator McConnell and Speaker Ryan shows a strong commitment to certain principles that will drive the tax conversation in the weeks ahead. We hope the next few months lead to a tax structure that is fairer, simpler and generates greater momentum for economic growth,” Adkisson said.
The discussion on federal tax reform comes at the same time Kentucky lawmakers are examining the state’s tax code and looking for ways to modernize the system for the first time in decades.
Kentucky Gov. Matt Bevin has said he will call a special session later this year to tackle reforms to the state’s tax and pension systems. House Speaker Jeff Hoover recently planned a meeting to call all 100 House members back to Frankfort to discuss taxes, pensions, and the budget.
What is done on taxes at the federal level could impact what Kentucky’s tax reforms look like and what Kentuckians see taken out of their paychecks.