Dec 08, 2017
Americans Deserve Much Better Than the Global Average from Tax Reform
Post by Freedom Partners
Adherence to the unified framework’s promise of a 20 percent rate is critical to make U.S. businesses more competitive
Arlington, VA — Not long after the U.S. Senate took an important step closer to pro-growth tax reform by passing the Tax Cuts and Jobs Act, legislation that would enact a simpler and fairer tax code, make businesses more competitive and provide tax relief for Americans struggling under the rigged system, media reported that one of the central tenants of the unified framework agreed to earlier this year was at risk.
According to The Washington Post, lawmakers are considering scaling back the 20 percent corporate tax rate passed by the House and Senate to just a hair under the 22.5 percent global average, in effect undermining the full economic benefits that families and U.S. businesses would see under the 20 percent business tax rate Congress and the administration promised.
Freedom Partners executive vice president Nathan Nascimento issued the following statement:
“Americans deserve a tax code that makes the U.S. more competitive with the rest of the world, increasing growth, jobs and wages. Including a corporate tax rate any higher than 20 percent would be a last-minute deviation from the unified framework, and would weaken the pro-growth aspects of the legislation.
“Congressional leaders should stick to their vision for a tax code that improves the well-being of all Americans, and hold firm on a 20 percent rate that gives Americans confidence that the days of being average are over.”
White House Director of Legislative Affairs Marc Short said on Thursday that President Trump wants the U.S. corporate tax rate to remain at the 20 percent passed by the House and Senate, arguing that domestic businesses are put at a competitive disadvantage due to tax rates well below the global average employed by America’s competitors, Reuters reported.
“When you’re seeing countries like Great Britain go below 20, you’re seeing Ireland at 12 percent, potentially going to single digits, 20 percent is about as high as we feel comfortable going,” Short said.
Freedom Partners and Americans for Prosperity recently called on the Senate Finance Committee to resist efforts to attach corporate welfare measures to the Tax Cuts and Jobs Act that would redistribute hundreds of billions of dollars from hardworking taxpayers to select corporations and industries that can afford to lobby for special treatment.
The two organizations have long supported the unified framework agreed to earlier this year and continue to urge Congress and the administration to unite Americans around a positive vision for comprehensive tax reform and advance the following five key principles for a simpler, fairer and flatter tax code.
- SIMPLICITY: Lower rates, fewer brackets, and the elimination of special loopholes, deductions and exemptions will make tax compliance easier and more affordable.
- EFFICIENCY: A broad-based, low-rate tax system is the most efficient way for the government to collect revenue – causing as little disruption to the economy as possible.
- EQUITABILITY: Corporate welfare and special-interest handouts in the current tax code create an unfair, two-tiered tax system and should be eliminated.
- PREDICTABILITY: Tax certainty is essential to a pro-growth tax system.
- NO BURDEN ON TAXPAYERS: Comprehensive tax reform should be done without placing new burdens on the American people, whether in the form of a BAT, VAT, carbon tax, or otherwise.