Rep. Smith hears call to simplify tax code, reduce tax rates

Simplify the federal tax code and reduce tax rates. That was the message delivered to U.S. Rep. Jason Smith at a roundtable discussion Tuesday in Jackson.

More than 30 invited business owners, residents and civic leaders turned out for the public meeting -- the fifth Smith has held recently on the topic of tax reform.

The Republican 8th District congressman from Salem said President-elect Donald Trump wants Congress to pass tax-reform legislation by August.

Smith said Congress has not settled on any changes to the tax code.

Business owner Jennifer Hendrickson said Congress needs to cut business taxes. She said lawmakers should consider adopting a "fair tax" or flat tax.

A fair tax amounts to a national sales tax. A flat tax would apply the same tax rate to every taxpayer regardless of income bracket.

Replacing the income tax with a fair tax is one of the ideas being discussed, Smith said.

The congressman said he wants to see "lower tax rates for everyone."

Jackson Mayor Dwain Hahs said Congress needs to simplify the tax code.

Echoing the views of others in the room, Hahs said simplifying the tax code would provide a major boost to the economy.

Gary Kamp told Smith that Congress must make changes to the tax code that will provide incentives for businesses to invest in this nation rather than move jobs overseas.

"It costs us jobs," he said of the current tax code.

Smith said Trump "has made it clear he wants to reward companies that operate in the United States."

Perryville city administrator Brent Buerck suggested lawmakers address the issue of online sales.

Many online purchases are not charged state and local sales taxes. That makes it harder for "mom and pop" businesses to compete, he said.

Hahs agreed, adding many cities depend on sales-tax revenue to fund municipal operations.

Smith said that issue is being discussed in Congress.

Developer and convenience-store operator Jeffrey Maurer said his company deferred some expansion and remodeling projects because of the federal tax burden.

Banker Wade Bartels said any tax-reform plan should look at government spending and how to move closer to balancing the federal budget.

Smith said tax reform won't be easy. He said any plan will be criticized.

"We have our work cut out for us," he added.

Any tax reform also needs to be implemented in such a way as "to avoid a major disruption to the economy," Smith said.

mbliss@semissourian.com

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