When the modern tax code was established in 1913, it contained 400 pages of laws and regulations. Today, our tax code includes 70,000 pages of regulations!
Clearly, America is in need of a serious tax overhaul if we are to compete in a global economy.
The primary goal of tax reform should be to make our tax code simpler and fairer, and to promote job creation and economic growth. Currently, most changes to the tax code involve special loopholes, exclusions, and deductions benefiting the well-connected, costing the federal government more than $1 trillion each year in lost revenue without helping ordinary Americans. Our current system isn’t fair, and it certainly isn’t simple.
Our tax code is also extremely non-competitive. The U.S. corporate income tax rate (incorporating federal, state, and local taxes) is the highest in the industrialized world, topping out at just over 39 percent. This tax disparity discourages investment and job creation, distorts business activity, and puts American companies, and workers, at a disadvantage to foreign competitors.
Charlotte-based Chiquita is in talks to merge with an Irish company, and many analysts believe Ireland’s lower tax rate is a driving force behind the merger. America’s corporate tax rate is putting local jobs at risk.
With our economy stuck in neutral, raising taxes on hardworking Americans and small businesses is irresponsible. North Carolina families should be allowed to keep more of their hard-earned money and reinvest it into our economy. That’s why I have worked with House Republicans to help pass several provisions to extend specific tax credits for ordinary American families, students, and small businesses.
- The Child Tax Credit Improvement Act (H.R. 4935) makes the current tax credit more accessible and equitable for middle-class families.
- Making Permanent Bonus Appreciation (H.R. 4718) permanently extends a pro-jobs tax credit which encourages businesses to move forward with job creation and expansion.
- The American Research and Competitiveness Act (H.R. 4438) is another pro-jobs bill which makes permanent the research and development tax credit, helping to create jobs and boost competitiveness in the global marketplace.
- The American Small Business Tax Relief Act (H.R. 4457) permanently allows small businesses to deduct the cost of purchasing new equipment. The majority of new jobs are created by small businesses.
Despite a divided Washington, we can and must do more. President Reagan’s tax reforms, which inaugurated an era of great economic growth and success, passed the House of Representatives with bipartisan support when liberal Democrat Tip O’Neill was Speaker of the House. Now is the time to build upon President Reagan’s leadership, reform our broken tax code, grow the economy, and create more jobs.
More on Tax Reform
Congressman Pittenger appeared on Squawk on the Street this morning to discuss the current situation with Burger King and the need for comprehensive tax code reform.
This morning, Congressman Pittenger joined SiriusXM host Tim Farley for a discussion on President Obama’s visit to Charlotte, the problem of tax inversions, and whether or not President Obama should attack ISIS in Syria.
On October 8th, Congressman Robert Pittenger (NC-09) joined POTUS Morning Briefing to discuss Obamacare, partial federal government shutdown, federal debt, reforming government, and more.