House Republicans propose new tax code

WASHINGTON (CNN) – House Republicans propose a new tax code for the United States on Friday.

Speaker Paul Ryan explained the details and what they want to accomplish.

We want a tax code that works for taxpayers, not for tax collectors. We want to make it simpler, flatter, fairer. Bring the number of tax brackets down from seven to three, lower rates for every hard-working American, bring the top rate down to 33 percent, close those special interest loopholes and carve-outs, consolidate those deductions and credits. Make it so simple, that the average American can do their taxes on a postcard and that the IRS — the average IRS agent can actually understand. More than that, we want America to be the best place in the world to do business. We cut taxes on small businesses, we lowered their top tax rate to 25 percent, we cut our corporate tax rate — which is the highest in the industrialized world — down to 20 percent from 35 percent. Stop taxing people when they bring their money into our country, so they bring more. Stop taxing new investments. Don’t punish people for saving and for investing — reward them. All of these things are going to grow our economy and create jobs. All of these things, these reforms will raise our wages right here in America,” Speaker Ryan said.

The blueprint doesn’t say how much money the reformed tax code would raise, but says the aim is to raise as much as the current code.

Given all its rate cuts and the repeal of several taxes, Republicans plan to rely on faster economic growth to achieve that goal.

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