February 15th, 2017 5:21 pmThe Tax Code Isn’t Working for America
There’s perhaps no greater defining mark of American politics today than the polarization that plagues our discourse. Acrimony has become the default posture of the major political parties and their supporters on even the most mundane issues.
But there is one issue—a major issue—that holds enormous bipartisan potential, despite the political animus: the need for comprehensive tax reform. Yes, disagreement naturally exists over some of the details on how to reform the tax code, but few argue against the need and urgency to do so.
The U.S. tax code is almost surreal in its complexity, making it impossible for most people and businesses to prepare their own returns. Roughly 70% of Americans rely on some form of paid assistance with their taxes, and the tax preparation industry is forecast to generate an incredible $11 billion in revenues in 2018. That’s a lot of money that could be better spent in productive ways in the real economy.
Small businesses, in particular, bear the brunt of the tax code’s many problems, creating significant and ongoing drag on our economy. And all U.S. businesses have to contend with a growth-killing 35% corporate tax rate, the highest among OECD countries.
Today, most businesses’ competitors reside not just next door and down the street, but across the globe. It’s no wonder why most of America’s global competitors have been cutting corporate tax rates for many years—to make it easier for their businesses to compete in the global marketplace. With its enormous complexity and sky-high rates, the U.S. tax code, meanwhile, actively stifles growth, entrepreneurship, innovation, investment and job creation.
The current tax code is broken. It must be simplified and set fair rates for businesses of every size. Only when this happens will the United States once again be the best place in the world to start and run a business.
The time for tax reform is now!