Americans for Tax Reform today sent the following letter to Senator John McCain (R-Ariz.):
On behalf of Americans for Tax Reform, I am pleased to support S. 1720, an economic growth bill which would create jobs and get America moving again.
President Obama has nothing more to offer Americans in the way of job creation other than his failed “tax and stimulus” agenda. What S. 1720 recognizes is that a bright economic future for the country will come from Washington getting out of the way and letting employers create jobs.
When it comes to taxes, the heart of S. 1720 is cutting the top marginal tax rate on families, small businesses, and larger employers. Your bill would cut the top marginal rate from 35 percent to 25 percent. Doing so will permanently increase the after-tax rate of return on new business investment, making it possible for employers to expand payrolls and for entrepreneurs to take more and greater calculated risk. Lower marginal tax rates also means that taxes will factor into business decisions less than they do now.
The rest of the world has learned these lessons about the power of lower marginal tax rates. In the developed world, the average corporate income tax rate is just over 25 percent—nearly a full fifteen percentage points lower than the U.S. total rate. It’s imperative to cut our top marginal tax rates in order to keep America an attractive place to do business and create jobs.
I urge all senators to co-sponsor S. 1720.