New Bill Would Make Long-Overdue Changes to Tax Code
Curtis Dubay /
With all the damaging bills coming out of Congress today, and promises of more to come, it is easy to lose sight of necessary positive policy changes that Congress should be making to improve the tax code and increase economic growth.
Representatives Jim Jordan (R-OH) and Jason Chaffetz (R-UT) look to fix that by proposing a series of changes to the tax code that will finally make those long-needed advancements.
Their bill, H.R. 5029, proposes the following:
1) Eliminate the tax on capital gains. The current tax code taxes capital heavily because of the capital gains tax, taxes on dividends, and through taxes on business income and the corporate income tax–especially because businesses cannot deduct the full cost of the capital they buy but must depreciate it over several years at a lower real value. This reduces the amount of capital in the economy and therefore destroys jobs and lowers wages. As such, taxes on capital should be minimal or nonexistent. Eliminating the capital gains tax completely is a long-overdue step that will reduce the tax burden on capital.