Hatch on Obama Administration’s Corporate Tax Reform Framework
SALT LAKE CITY - U.S. Senator Orrin Hatch (R-Utah), Ranking Member of the Senate Finance Committee, issued the following statement today after Treasury Secretary Tim Geithner unveiled a corporate tax reform framework:
“When President Reagan overhauled the tax code, it took him three long years and he pursued it with a laser-like focus. He led; he put forward ideas; and he never stopped working to make tax reform a reality. His commitment stands in sharp contrast to what we are seeing from the White House today.
“America’s tax system is broken to the point that it’s putting our nation at a competitive disadvantage around the world. I’d hoped the White House would recognize the severity of the problem with a real plan and real leadership. But, after months of promises, we instead got a set of bullet points designed more for the campaign trail than an actual blueprint for fixing our tax code.
“Profoundly disappointing in its lack of detail, I told Secretary Geithner yesterday, the devil’s in the details when it comes to reforming our tax system – details that are sorely missing in what was released today. Unfortunately, this so-called framework is murky, ill-defined and contradictory to the goal of reducing complexity and making our tax code more efficient.
“Last Fall, Republicans on the Senate Finance Committee proposed reducing our corporate tax rate to 25 percent and moving to a more efficient territorial tax system. Instead, the Administration today only reduces the corporate rate to 28 percent and retains the antiquated worldwide system of corporate taxation. Instead of simply reducing and eliminating tax preferences, the Administration proposes more. Instead of putting forward real ideas, there’s more of the same political rhetoric that is not designed to move reform forward.
“Furthermore, we should not limit tax reform to the corporate side alone - that wouldn’t be fair to the millions of hard-working American families and the small businesses which account for roughly half of U.S. private sector jobs. Those families and businesses deserve a stronger, more efficient tax code. As I’ve long said, corporate and individual tax reform must go hand-in-hand. Moreover, any so-called reform that includes a back door tax increase isn’t real reform – it’s a ploy to generate more money for Washington to spend.
“I hope the White House changes its tune and demonstrates a real commitment to overhauling our tax code in a real and meaningful way. If they do, they’ll have willing and able partners in Congress working together to advance a strong, pro-growth economic agenda to build a prosperous America.”
NOTE: Last October, as part of their recommendations to the Joint Select Committee on Deficit Reduction (Joint Committee), Senate Finance Committee Republicans said Congress should act to bring the U.S. tax system more in line with other countries’ tax systems by having a territorial system. They further recommended the corporate tax rate be dropped to 25 percent.
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