While there is consensus that the existing tax code is unacceptable, there remains disagreement about what the new product should look like.
ATR today released its views on tax reform. Broadly, tax reform should promote three principles:
- Make America Competitive Again
- Promote fairness and simplicity
- Promote economic growth
First, tax reform must ensure that businesses of all sizes can compete. As the rest of the world aggressively updates their tax codes to compete in the global economy, the U.S. code remains unchanged, forcing American businesses to invert or be acquired by foreign competitors. Tax reform must fix this competitiveness problem and stop needlessly punishing American business to the benefit of our foreign competitors.
Second, tax reform ought to create a code that is equitable and simple. In its current form, the tax code is too complex for families and small businesses and unfairly places burdensome compliance costs on those least equipped to deal with it.
Third, tax reform must promote economic growth and encourage innovation. The status quo of stagnant growth is unacceptable, and tax reform should ensure that anti-growth provisions are swept away and replaced with a system that drives job creation and higher wages.
Beyond these three principles, there are specific provisions in the code that tax reform should change or remove, and others that must not be added. Priorities should include:
- Reduce business tax rates
- Move to a territorial system of taxation
- Tax all businesses equitably
- No carbon tax
- Full business expensing
- Repeal or reduce the capital gains tax
- Encourage tax-preferred savings accounts
- Repeal the Death Tax
- No government run tax preparation
- Repeal the Alternative Minimum Tax
- No VAT
- Repeal Obamacare Tax Hikes