Conservative groups led by a group formed by former Vice President Mike Pence sent a letter Monday to the top Republican on the powerful House Ways and Means Committee, calling for lower corporate tax rates and an elimination of the capital gains tax on inflation.
Nearly 40 conservative leaders from think tanks and policy groups have written two letters to Representative Jason Smith (R-Missouri), who will play a central role in formulating tax policy in the next Congress, where Republicans plan to raise taxes. sent. The cuts were first signed into law by President-elect Trump in 2017. The letter was first obtained by The Hill.
“We appreciate your early and important efforts to extend the expiring portion of the Tax Cuts and Jobs Act of 2017 (TCJA). We encourage this,” the group wrote in one of its letters.
The 2017 tax law lowered the corporate tax rate from 35% to 21%, but President Trump and other Republicans have argued that lowering the corporate tax rate further would encourage companies to do business in the United States. .
The second letter asks Smith to eliminate the capital gains tax on inflation as part of the 2025 legislation.
“It is completely unfair that taxpayers have to pay capital gains tax on inflation because they receive no real increase in value or purchasing power due to inflation. Quite the contrary. , and must also pay capital gains taxes on phantom gains. It is long past time for this injustice to be corrected,” the letter said.
The lead signatory of both letters is Paul Teller, executive vice president of American Freedom Advancement, an advocacy group founded by Pence after he leaves office in 2021. Preserving the tax cuts from the 2017 law was a key priority for Mr. Pence's group. .
Other signatories include Grover Norquist, chairman of Americans for Tax Reform. Brent Gardner, Chief Executive Officer for American Prosperity; Mr. Alfredo Ortiz, CEO of Job Creators Network. Saul Anuzis, president of the American Association on Aging; Annette Olson, CEO of the John K. McIver Public Policy Institute;
Republicans have been debating how to order legislative policy starting in January, when they will control both chambers of Congress and the White House.
Some Trump administration officials plan to introduce a second round of tax reform settlements before the end of the year, while lawmakers plan to pass legislation in January through a reconciliation process that does not require Democratic support to strengthen border security. He has expressed his hope that it will be passed.
But other lawmakers, including Smith, have expressed concerns about putting tax reform on the back burner.
Smith noted that moving the two budget reconciliation proposals would be difficult, especially given the slim House Republican majority.
