Amelia Breinig, Julia Lawless (202)224-4515
Time to Reform the Broken Tax Code
The bloated U.S. tax code is a tangled web of legislative provisions, regulations, and rulings that confuses American taxpayers, impedes economic efficiency, treats similarly-situated taxpayers differently, and stifles the competitiveness of American businesses.
But, that’s about to change.
For the first time in more than eight years, Washington finally has a President who is ready and willing to get in the game and lead on tax reform. The Administration has already provided guideposts for Congress to follow as it works to rebuild the broken tax code. And, the congressional tax-writing committees have taken a deep dive into developing policy solutions that members can unite behind.
In fact, this week the Senate Finance Committee, from both sides of the aisle, met with Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn to discuss viable policy options for tax reform. Over on the House side, the Ways and Means Committee held a hearing to examine the benefits of pro-growth tax policies. They’ll be back at it next week. And, the Treasury Secretary will also return to Capitol Hill – most notably to testify before the Finance Committee on current tax policy, reform principles and options, and the President’s budget proposals for Fiscal Year (FY) 2018.
WHAT WE KNOW
The American tax code is outdated. It’s a complex maze of deductions, exclusions, and credits which may have had rationales on stand-alone bases, but have not resulted in a fair or efficient tax code, when taken as a whole.
The American tax code is anti-competitive. The punitively high corporate tax rate has harmed the U.S. economy and tax base by chasing businesses, business activity, jobs and corporate profits off shore.
WHAT WE’RE DOING
Republicans are unified in advancing a comprehensive tax overhaul that will: create a system anchored by simplicity and fairness; help provide more relief to the middle class; help boost wage, job, and economic growth; make American businesses more competitive in global markets; and make the United States a more inviting place to invest, locate, and produce.
HOW WE’LL DO IT
Increase Competitiveness: By lowering the punitive corporate tax rate from one of the highest in the world to one of the lowest, we can keep American job creators globally competitive, make our nation a more inviting place to do business, promote investment in America, and increase wage growth for workers.
Promote Fairness: Providing responsible tax relief for hard-working, middle-class individuals and families will allow Americans to use more of their hard-earned income on their own families, family care, and savings and investments for the futures.
Ensure Simplicity: Simplifying the U.S. Tax Code will make it easier for Americans to understand and navigate the system, promote greater fairness, and ensure that ordinary Americans aren’t sidelined because they cannot afford high-priced tax experts.
Next Article Previous Article