Take you right to our conical page where you can read all 429 pages. Several administrations figures were out last week to talk about tax reform. Among them treasury secretary Steven Nugent who offered these thoughts. This is about 20 minutes. Good morning everybody. It is great to be here today at the International Franchise association with so many Small Business leaders. I cant think of a better place to have this than here in downtown l. A. I look forward to visiting the various Business Owners after the speech today. This morning, the house ways and Means Committee released the bill that will dramatically cut taxes and reform our tax system. The tax cuts and job act is a bold pro growth bill that will overhaul our nations tax code for the First Time Since president reagans historic tax reform 31 years ago. Later this week i look forward to visiting the Reagan Library and speaking there to pay tribute to president reagan and his overhaul of the tax code. we are going to make it easier to start your own business is easier to beat your own boss. The life of a Small Business owner today is filled with extensions, itemization and complex regulations. As a country, we spend billions of dollars and hours each year preparing for april 15. While some people benefit from this complexity, it is not hardworking, Small Business owners that are here today. Our goal is to make the system fairer so that all American Business can succeed in local communities to thrive along with them. The people in this room are why we need to fix the tax system. We need to make it easier for Small Businesses and middle income families succeed in america again. The only way we can do this and give a raise to American Families is by reforming the entire tax code. It has been over 30 years since we last had tax reform in this country. The world has changed and since then, now, we need to change the text go to remain competitive. We want to see more native america and this requires a tax code made for americans. We are proposing for major reforms to the tax code on the personal and business side. The first is tax relief for American Families and the second is simplification, eliminating loopholes that make our system complex and unfair. The third is making our Business Rates competitive again. The fourth is illuminating the incentives that reward off shoring of jobs and keep cash overseas. These reforms roll out everyone but especially those in this audience that benefit on both the business and personal side. We want to make a level Playing Field for our franchisees, domestic manufacturers and familyowned Small Businesses that have been forgotten by washington. We currently pass tax entities like llcs and so partnerships and a top rate of 39. 6 . We are going to lower this rate to 25 and that is the lowest rate for small and mediumsize businesses in over 80 years. [applause] this is money that these companies will reinvest into expanding their business and create better paying jobs and more Economic Growth for our country. We will do this while ensuring the safeguards exist to prevent this from being used to avoid paying taxes. American business tax rate is not only the highest in the developed world but far higher than our average economic competitor. Since 1986 when we last passed tax reform other countries have learned our lesson and reduced their rates. This attracted copies to set up operations overseas instead of here at home in the United States of america. This should not be a partisan issue. Everyone recognizes operating america should be encouraged and not penalized we will reduce the business rate to 20 and this will encourage companies to stay and produce here in america where we want jobs and better paying jobs. Our plan calls for massive investment of capital back into our country. We currently have a system, worldwide taxation and deferral that encourages our company to leave their profits offshore and it is not surprising that they are literally trillions of dollars sitting offshore to fix this we will move to a territorial system of taxation like most of our economic competitors and this means we will no longer subject american firms to us taxation while they bring their profits home. Those trillions of dollars will flow back to the country and when you combine this with rate reduction and repatriation with immediate expensing allowing business to write off new machinery and equipment cost it will lead to significantly more domestic investment. The effect of these reforms will be higher Economic Growth and an additional 1 of gross adds over 2 trillion to our government revenues that pay down our debt. Economic growth is not academic but it means better paying jobs, innovative goods and services. It means Economic Growth and opportunities for a new generation of americans. Our two objectives on the personal side are dissembled by the tax system and provide a tax to middle income americans. The American People should be able to keep more of their hard earned money each month. Years of stagnant wage growth will give way to growing projects and increasing labor force participation. We want to make the month of april more easier not stressful. This is a burden we will do something about. Our plan will allow most americans to fill out their taxes on a single sheet of paper. This is not just money back in the pocket of American People but meaningfully time saved. One of the ways we accomplish this is by removing special interest loopholes and deductions. We are doubling the deduction and under plan families will be able to take a 24000 deduction. This means the first 24000 a family from will be taxfree. The plan is a new family tax credit and expand the Child Tax Credit making it easier to raise and support a family. The plan gives a muchneeded pay raise to American Workers and their families. We have been working on this plan to develop this since the beginning of the year and today is the first day in moving this bill forward we have listened to the American People and as this loose committee there will be more input. This is the most important issue that we passed tax reform and have it to the president s desk this year to sign. This is critical for Economic Growth and critical for jobs and critical for our country. I am confident we will get it done. Thank you all and its great to be here with you today. [applause] thank you so much. This is wonderful news. We look forward to being active with the administration and the administration has cut more Regulatory Burden than any other administration in the past and we really appreciate all the hard work the president and his team were putting in in that regard. I know you are all eager to explore the franchise expo and i want to first be in a position to thank msv productions for their hard work and for their continued dedication to franchising. I will ask secretary matt nguyen and other speakers to join me to help cut the ribbon for the expo and we will open up. Thank you so much everyone. [background noises] [applause] [background noises] [inaudible] in the case of the corporate rate, and pay the Dividend Rate as well. The reason of having the split rate is because in the past system is not subject to the double taxation but again i know there will be continued discussion throughout this process. We are committed to make sure that there is, as i said, for small and mediumsize businesses that there is substantial tax reform and cuts. [inaudible] do you think its fair for him to be responsible for the republican member of congress . For small, i am confident that it will be done by christmas and i am comfortable with that and i have had the opportunity to work with the president since the campaign on this and yes i am comfortable with holding me accountable. The question is theres no margin for error to get this to the house and youll lose about of the republican vote for this and zero democrats are aboard. Are you confident that you can get through . If not, how will you get democrats on board . What is up for negotiation and what is nonnegotiable . We look forward to going to the Committee Process both in the house and the senate and i would comment specifically on the senate where we had discussions for Many Democrats and those who come on air force one in their state and as i said this morning many of these issues are not partisan issues but creating middle income tax credits and creating a competitive Business System to bring jobs back here. We hope for and look forward to there being some democrat support. Is there anything not up for negotiation . I would say its pretty clear that the business rate president has made clear and thats where we want to stay. Sick with 1. 5 trillion pocket in order to get the budget reconciliation and not pay over that. Does it give you wiggle room . No, im very confident with what we have in the budget reconciliation and were comfortable that it will pay for the trillion and half dollars through growth and as i talked theres a half would different between the baseline and policy. We think we should no, were comfortable that we can do this within the reconciliation constructions. I thought the last one. Will come back to you. Let other people and then will come back. [inaudible] again, having lived in new york and california i ams prophetic to this issue. On the other hand, we think the federal government should get out of the business of subsidizing. Having said that, the states and the ways and means proposal there is a proposal for part of real estate taxes will be covered and it will cover most of the middle class. We have worked through a lot of the examples in new york and new jersey and california and looking at the middle class we believe they will have tax cuts. [inaudible] again other than what i read in the paper are not familiar with the allegations whatsoever. Followup, you mentioned relying on the [inaudible] with that have an impact on what youre relied on to get this through . I would say, again, in general the growth is an weve already seen this amazing the stock market up a lot in anticipation of the economic plans and weve seen this in the regular tree issues and weve had the opportunity to work with the feds so far this year on helping on regulation and weve done a lot and so im comfortable with the process. [inaudible] sorry, who said that . [inaudible] not the ceos i have spoken to, not the Small Business owners. I have spoken to literally hundreds of them and theres a big commitment for jobs in bringing back business to the United States. [inaudible] i do think it is. Again, it is aggressive. Let me be clear. Its an aggressive timeline but i think we have the ability to take input in both committees and theres a timeline to getting this done. We can take a couple more. [inaudible] no, im not making any comments on that. [inaudible] again, we spent a lot of time on the issue of Interest Deductibility and i think, as you know, inhouse gop plan they had proposed originally eliminating all business deductibility and they heard a lot of concerns about that, as did we. I think we have struck the right balance in the current proposal but again, i want to emphasize there will be more discussion on this as we go through the process. Why dont i take two more questions and then we move on. [inaudible] again, i would say he will look forward to the discussion on that and for most of america and most of the middle class they are covered with the 500,000dollar deductible. As i think the president has said this is not about tax benefits for rich people. This is about making business competitive and middle income tax cuts. [inaudible] again, we are sensitive to these economies but thank you very much everybody. I put it you being here. Today is the day House Republicans get to work on their tax reform proposal. In about 40 minutes or so the house ways the meeting will start the market process before they send it off to the full house for debate and vote. The live coverage starting at noon eastern here on cspan2, also online at cspan. Org. You can listen using the free cspan radio app. We do have the entire bill for you to read. Go to cspan. Org congress and that will take you right to our