WHAT IS THE NEW TAX RELIEF FRAMEWORK

FROM THE PRESIDENT & CONGRESS?

AND WHAT IT WILL MEAN FOR NEW JERSEY
On September 27, leaders in Congress and the Administration released a unified tax
framework that will serve as a guide for legislators as they finalize bill text and work the final
tax reform package through the committee process. This framework represents an important
step in the right direction for the American economy, and we look forward to working with
members of Congress and the Administration to craft the best possible tax reform legislation
and deliver it to the American people this year. Heres what the framework includes:

INDIVIDUAL TAX RELIEF

1. Reduce the current seven brackets to three: 12%, 25%, and 35%, with the option to add a
fourth, higher bracket to pay for more middle-class relief;
2. Nearly double the standard deduction to $12,000 for single filers and $24,000 for married
couples (which, i.e., provides relief to lower-income earners);
3. Repeal the individual Alternative Minimum Tax (AMT);
4. Repeal the death and generation-skipping transfer tax;
5. Increase the scope of the child tax credit (tax-writing committees will decide how much);
6. Create a $500 tax credit for non-child dependents (e.g., the elderly);
7. Retain itemized deductions for home mortgage interest and charitable contributions; and
8. Retain incentives for higher education, retirement, and work.

BUSINESS TAX RELIEF

1. Reduce the corporate income rate from 35% to 20%;
2. Seeks to eliminate the corporate Alternative Minimum Tax (AMT);
3. Reduce the top pass-through business income rate from 39.6% to 25%;
4. Allow for the full and immediate expensing of capital investments for a period of five years;
5. Switch the U.S. to a territorial system, with a bifurcated rate on currently held cash/non-
cash assets, and a 100% exemption for dividends going forward;
6. Partially limits the deduction for net interest expense for C corporations; and
7. Seek to eliminate all business deductions and credits except for research and development
(R&D) and low-income housing.
ACCORDING TO THE TRUMP ADMINISTRATION, THE HOUSE
COMMITTEE ON WAYS AND MEANS, AND THE SENATE COMMITTEE
ON FINANCE, THERE ARE FIVE GOALS LAID OUT IN THE
FRAMEWORK
1. Tax relief for middle-class families.
2. The simplicity of postcard tax filing for the vast majority of Americans.
3. Tax relief for businesses, especially small businesses.
4. Ending incentives to ship jobs, capital, and tax revenue overseas.
5. Broadening the tax base and providing greater fairness for all Americans by closing special
interest tax breaks and loopholes.

3 IMPORTANT TAKE-A-WAYS
1. The clock is ticking. Congress must seize this once-in-a-generation opportunity and
move as swiftly as possible to get a tax reform bill to the presidents desk by years end.
A critical first step is immediately passing a Fiscal Year 2018 budget resolution containing
reconciliation instructions on taxes. Tax reform is too important to be caught up in
procedural delays.
2. Dont let special interests hi-jack the process. This framework is the kind of bold tax
reform Americans need to reignite our economy, but the special interests who benefit from
the current code will work tirelessly to protect every loophole and carve-out. Congress
needs to stand-up to the special interests for the good of all Americans, especially the least
fortunate.
3. Americans for Prosperity is all-in on this effort and will be engaging heavily. Our
grassroots army will encourage our elected officials to support this framework. We are
committed to making tax reform a reality in 2017.

For inquiries, please contact:

New Jersey State Director Erica Jedynak at EJedynak@afphq.org or 862-229-4953
New Jersey Grassroots Director Tony Howley at THowley@afphq.org or 609-335-1987
w: AFPNewJersey.com | o: 550 West Main Street, Suite 5, Boonton NJ 07005