Rep. Schock explains tax reform proposals

By Audrey Wise

August 16, 2013 Updated Aug 16, 2013 at 6:54 PM CDT

PEORIA, Ill -- While Congress remains on a month-long summer recess many lawmakers are meeting with constituents to discuss the most pressing issues in Washington.

Congressman Aaron Schock (R) met with Peoria-area business leaders Friday to explain the comprehensive tax reform he is working on.

"Really taking the 70,000 page tax code and throwing it out of the window and boiling it down to a couple of pieces of paper is the ultimate goal," said Rep. Schock.

Congressman Schock has been working with the ways and means committee for two years on individual and corporate tax reform. He said they have agreed to reform that is revenue neutral.

"So nobody's taxes are going to go up or down. We're going to collect the same amount of revenue, but we're going to get rid of all the complexities in the tax code."

On the individual side, which actually includes about 80% of business, they hope the change from 6 tax rates to just two.

"It would be 10% tax on roughly your first $50,000 or $60,000 and then everything over that would be taxed at roughly 25%," he said.

Right now the U.S. has the highest corporate tax code in the world at 43%. By comparison, Canada sits at just 15%.

Rep. Schock said, "It would come down to 25% by getting rid of a lot of the deductions and loopholes."

After deductions, Caterpillar pays about 28-30% tax. A Cat spokesman says they are a big proponent of tax reform and the sooner the better to help all those involved.

"The domino effect of improvement at the corporate level, translating down to better economic health for individual employees," said Jim Baumgartner, Caterpillar's Director of corporate public affairs.

Congressman Schock hopes for a vote on the matter sometime this fall. But the fate of the bill is still uncertain with Washington gridlock near an all time high and Congress' approval rating still near an all time low.

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