The Tax Reform Act of 2014: Making Today’s Tax Code Simpler and Fairer
while Creating More Jobs and Higher Take Home Pay for American Workers
Tax reform has two primary goals. One goal is to make the tax code simpler and fairer for families and employers. Another goal is to strengthen the economy so there are more jobs and bigger paychecks for American families.
Based on analysis by the independent, non-partisan Joint Committee on Taxation (JCT) – without increasing the budget deficit – the Tax Reform Act of 2014:
- Creates up to 1.8 million new private sector jobs.
- Allows roughly 95 percent of filers to get the lowest possible tax rate by simply claiming the standard deduction (no more need to itemize and track receipts).
- Strengthens the economy and increases Gross Domestic Product (GDP) by up to $3.4 trillion (the equivalent of 20 percent of today’s economy).
Based on calculations using data provided by JCT, the average middle-class family of four would have an extra $1,300 per year in its pocket from the combination of lower tax rates in the plan and higher wages due to a stronger economy.
Section by Section
How We Got Here
Typical Taxpayers and the Tax Reform Discussion Draft
Independent Economists Agree: Tax Reform Results in Stronger Economic Growth, More Jobs, and Higher Wages