Proposal today begins the conversation on fundamental tax reform
WASHINGTON — Americans for Tax Reform President Grover Norquist today praised the President’s Advisory Panel on Federal Tax Reform for its release of tax reform proposals. It helps begin the dialogue on fundamental tax reform, and serves to highlight universal goals of economic growth, job creation, and increasing the incentives for work, saving, and investment.
The panel today released some elements of the reform package it will fully-unveil on November 1st. The most pro-growth pieces were lower marginal tax rates, a lessened rate on capital gains and dividends, immediate expensing of business equipment, and the expansion of tax-free savings accounts.
“This is a great way to start the debate on tax reform,” said Norquist. “There is a broad consensus in the tax reform movement that income should be taxed one time and at one rate only. I look forward to seeing how the commission will build on this move toward a consumption base, flat rate system in its November 1st proposal.”
ATR has long advocated a tax system that taxes all income once and only once, at a low, flat rate. The current tax system double-taxes savings and investment, double taxes income earned abroad, forces businesses to depreciate rather than expense purchases of equipment and structures, taxes after death, and subjects income to steep marginal tax rates that discourage work, saving, and investment.
“The commission report on November 1st should address the inequities and anti-growth distortions in the current tax system,” continued Norquist. “History has demonstrated that the best way to move toward the consumption base, flat rate system that would do this is through incremental tax cuts to the current code. Each year of the Bush Administration, there has been a tax cut that has moved the system closer and closer to a consumption base with flatter rates. The elements revealed today by the commission continue that progression, and I look forward to seeing the full body of its work.”