SALT LAKE CITY — Promising relief for middle-class families, Sen. Orrin Hatch says he's ready to roll up his sleeves and go to work on overhauling the federal tax code and making it simple enough to file returns on a postcard.
The Senate Finance Committee, which Hatch chairs, the Trump administration, and the House Ways and Means Committee unveiled a framework for reform Wednesday that they say would broaden the tax base, close loopholes and grow the economy.
"If I had my way, I would bring down taxes dramatically and try to get our system so it's a better system that has more incentives so that we can grow the economy faster and make sure that jobs the people have are real jobs," Hatch said in an interview last week.
The nine-page document, "Our Framework for Fixing Our Broken Tax Code," is being presented to Republicans and the public as a starting point for negotiations on a tax deal. Hatch said it serves as a roadmap for congressional committees to draft legislation that modernizes the tax system and embraces the GOP's shared vision.
“For too long Americans have been bogged down by an outdated tax code that runs counter to the goal of growth, and fails to promote jobs and investment here at home,” Hatch, R-Utah, said in a statement.
The plan proposes to expand the standard deduction, which Hatch said would cut taxes for tens of millions of middle-class families in Utah and across the country, and ensure that many low- to moderate-income earners owe no taxes at all.
It also would expand the child tax credit to provide relief to low- and middle-income families, and simplify the complicated rate structure for individual income taxes.
The framework would eliminate most itemized deductions, but retain tax incentives for home mortgage interest and charitable contributions.
Sens. Mike Lee, R-Utah, and Marco Rubio, R-Fla., issued a joint statement, saying they are encouraged by the plan's priority for a "significantly increased" child credit.
"It is clear from the release of the 'Big Six' framework today that an enhanced child tax credit remains the best way to provide meaningful tax relief for working American families," the senators said Wednesday, referring to Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn and top Republicans in the House and Senate.
Lee and Rubio said the child credit must be at least doubled to ensure working families get real tax relief. Reform, they said, should focus addressing current challenges facing working families.
President Donald Trump told reporters the plan is a "revolutionary" change and that the biggest winners would be middle-class worker as "jobs start pouring into our country, as companies start competing for American labor, and as wages continue to grow."
Democrats and progressive groups swiftly denounced the tax plan as a false promise to the middle class, according to the New York Times.
"If this framework is all about the middle class, then Trump Tower is middle-class housing,” said Sen. Ron Wyden, D-Ore. “It violates Trump’s tax pledge that the rich would not gain at all under his plan by offering sweetheart deals for powerful CEOs, giveaways for campaign coffers and a new way to cheat taxes for Mar-a-Lago’s loyal members."
American for Prosperity-Utah praised the plan, saying it has the potential to "unrig" the economy.
"Utahns want to keep more money in their paychecks. Our grass roots are actively contacting their members of Congress to take advantage of this once-in-a-generation opportunity to pass comprehensive tax reform," according to the group's state director, Evelyn Everton.
Highlights of the proposed tax reform framework include:
• Lower rates for individuals and families.
• Double the standard deduction and enhance the child tax credit.
• Eliminate loopholes for the wealthy.
• Repeal the death tax and alternative minimum tax.
• Create a new lower tax rate and structure for small businesses.