Reichert Statement on Full Comprehensive Tax Reform Discussion Draft
Washington, D.C. – Today, Congressman Reichert (WA-8) released the following statement on Ways and Means Committee Chairman Dave Camp’s release of a comprehensive tax reform discussion draft:
“No one has worked harder to move tax reform forward than Chairman Camp, and I applaud his continued efforts in today releasing a comprehensive tax reform discussion draft. Talking to constituents in my district, it’s clear – families, small businesses, and corporations all agree that our current tax code is unfair, out-of-date, and a strain on family pocketbooks and businesses’ bottom line. The status quo is unacceptable. Comprehensive tax reform will energize the economy by putting more money in the pocket of hard working Americans and businesses and create more jobs. While there are those who will have concerns with the draft, I look forward to working with all of them as the Committee continues its push to make the tax code work for the American people – not the other way around.”
Congressman Reichert’s Priorities that were included in Chairman Camp’s draft include:
S Corporation Modernization Act, H.R. 892:
The S Corporation Modernization Act would modernize the rules that apply to firms that have selected S Corporation status, increase the ability of S Corporations to access needed capital, and ease and expand S Corporations’ ability to make charitable donations.
Personal Holding Company Tax Parity and Reinvestment Act, H.R. 6660 (112th Congress):
The Personal Holding Company Tax Parity and Reinvestment Act removes an outdated surtax that discourages U.S. companies from bringing home their profits made overseas.
HRA-VEBA Equitable Treatment for all Public Sector Employees Act, H.R. 2698 (112th Congress):
This provision will preserve an important medical savings and worker retention tool for thousands of public employees, school teachers, utility district workers, and their public sector employees.
Language to ensure that organizations like AARP stay true to their mission by making sure they pay tax on for-profit business activities
Congressman Reichert was co-author of a 2011 investigative report “Behind the Veil: The AARP America Doesn’t Know”. Among other things, the report found that ostensibly non-profit organizations like AARP were making millions of dollars in royalty revenues from insurance companies. The draft ensures that they now pay tax on those royalties.
Preserves special incentives for small exporters:
The draft retains Interest Charge Domestic International Sales Corporations, a tax structure that allows small exporters to earn income at capital gains rates.