Aug 30, 2017

Put Americans First, Un-rig the Tax Code

Post by Freedom Partners

Arlington, VA – Earlier today, President Trump addressed manufacturing workers in Springfield, MO about the need to un-rig the economy with comprehensive tax reform that will restore fairness to our tax system by simplifying the tax code and closing special interest loopholes.

Freedom Partners spokesman Bill Riggs issued the following statement on the speech:

“Today’s tax code takes too much, is too complicated, and pits hardworking Americans against powerful and politically-connected special interests. President Trump is exactly right when he says that the economy is rigged, and the way to un-rig is to get rid of as many loopholes and carve outs as possible and lower rates as low as they can go.

“Americans deserve a tax system that is simple, fair, and lets individuals and families keep more of what they earn. No one believes that the current tax code is working. We urge Republicans and Democrats to follow the president’s lead, put taxpayers before special interests, and start competing for jobs and opportunity in America, instead of pushing them away.”

Freedom Partners and Americans for Prosperity have both urged Congress to be bold in their efforts to deliver a simpler and fairer tax code and remain committed to un-rigging the economy by eliminating carve outs and loopholes to lower rates across the board. Below are the key principles outlined in the joint report released earlier this summer: Comprehensive Tax Reform: Un-rigging the U.S. Economy.

  • 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.

Tax reform that adheres to these principles will help create jobs, increase wages and provide greater financial security for all Americans.

WHAT THE “BIG SIX” ARE SAYING ABOUT UN-RIGGING THE ECONOMY AND RESTORING FAIRNESS TO THE TAX CODE

House Ways And Means Committee Chairman Kevin Brady (R-TX): “With your help, America, we can close the special-interest loopholes. We can lower tax rates for American families and job creators. We can vault America from nearly dead last among our global competitors back into the lead pack with one of the most pro-growth, pro-jobs tax codes on the planet.” (Press Release, “Brady Remarks At The Reagan Ranch: ‘We Are Fighting For Those Same Fundamental Principles Ronald Reagan Did – The Fairness, Simplicity, And Certainty You Deserve,” House Ways And Means Committee, 8/16/17)

Treasury Secretary Steven Mnuchin: “Mnuchin said the current rate of 35 percent is one of the highest in the world and the goal of tax reform is to broaden the base so the rate can be brought down. ‘We’re going to broaden the base so as we bring down the rate to a competitive level, we’re going to get rid of lots of deductions, and we’re going to make sure that companies reach economic decisions that are good for Americans and that are good and competitive and fair,’ Mnuchin said. ‘We want people to be able to compete against countries and businesses all over the world.’” (Ali Meyer, “Focus Moves To Taxes As Treasury Secretary Touts Simple And Fairer Tax Reform,” Washington Free Beacon, 8/1/17)

National Economic Council Director Gary Cohn: “On the business side, we are proposing to get rid of many of the deductions that companies can take right now to lower taxable income. At the moment we start with a high corporate tax rate in America but companies use deductions: what we are trying to do is get everyone to pay at a lower rate. This is a big base-broadening exercise. … When we grow the economy we will see substantial growth in revenue.”(Transcript, “Gary Cohn On Tax Reform And Charlottesville,” Financial Times, 8/25/17)

House Speaker Paul Ryan (R-WI): “Another thing is fairness. And this is what I want to talk to you about just as people, as families, as workers. We don’t really have a system that is very fair, and one of the reasons why our system is not very fair is because it’s really complicated. You can sit next to your next-door neighbor, have the same kind of income, and pay dramatically different taxes because of all the different carve outs and loopholes in the tax code. So we want to clean this thing up. We want to clean up our tax system to make it simple and fair. Condense all these redundant loopholes. Get rid of a lot of these sort of bizarre special-interest carve outs. And just lower people’s tax rates. Cut people’s taxes. Lower people’s tax rates.” (Press Release, “Speaker Ryan Makes The Case For Tax Reform In Oregon,”House Speaker Paul Ryan, 8/23/17)

Senate Majority Leader Mitch McConnell (R-KY): “The American people deserve a tax system that works for them instead of against them. They deserve a less complicated tax code, one with lower rates that encourages companies to hire more workers and invest here at home. Americans deserve true comprehensive tax reform that cuts taxes for small businesses and families.” (Senator Mitch McConnell, Opinion, “Tax Reform To Move Kentucky Forward,” Insider Louisville, 8/28/17)

Senate Finance Committee Chairman Orrin Hatch (R-UT): “I’ve been working on tax reform for more than six years now, and this is the first time that we’ve had anything approaching this level of unity across the various chambers and branches of government.” (Press Release, “Hatch Lays Out Path Ahead On Tax Reform,” United States Senate Committee On Finance, 8/3/17)

Joint Statement On Tax Reform From The “Big Six”

The Big Six, Consisting Of House Speaker Paul Ryan (R-WI), Senate Majority Leader Mitch McConnell (R-KY), Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-UT), and House Ways and Means Committee Chairman Kevin Brady (R-TX), Wrote That The Single Most Important Action To Grow Our Economy Would Be To Fix The Broken Tax Code. “We are all united in the belief that the single most important action we can take to grow our economy and help the middle class get ahead is to fix our broken tax code for families, small business, and American job creators competing at home and around the globe. Our shared commitment to fixing America’s broken tax code represents a once-in-a-generation opportunity, and so for three months we have been meeting regularly to develop a shared template for tax reform.” (Press Release, “Joint Statement On Tax Reform,” The White House, 7/27/17) 

The Big Six Wrote The Most Important Goal Is To Protect American Jobs And Make Taxes Simpler And Fairer For American Families. “Above all, the mission of the committees is to protect American jobs and make taxes simpler, fairer, and lower for hard-working American families. We have always been in agreement that tax relief for American families should be at the heart of our plan.” (Press Release, “Joint Statement On Tax Reform,” The White House, 7/27/17)

The Big Six Emphasized Also Lowering Rates For Small Businesses, And Creating A System That Encourages American Companies To Bring Back Jobs And Profits Trapped Overseas. “We also believe there should be a lower tax rate for small businesses so they can compete with larger ones, and lower rates for all American businesses so they can compete with foreign ones. The goal is a plan that reduces tax rates as much as possible, allows unprecedented capital expensing, places a priority on permanence, and creates a system that encourages American companies to bring back jobs and profits trapped overseas.” (Press Release, “Joint Statement On Tax Reform,” The White House, 7/27/17)

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