Last week, the U.S. Chamber, along with the Business Roundtable, the National Federation of Independent Business, and the National Association of Manufacturers, sent a message to Congress urging them to reform tax policy. The four business organizations represent all industries and companies of all sizes in all 50 states.
Their message was simple: create jobs and grow the economy through tax reform.
Today, the American corporate tax rate is 35 percent. According to a report by Deloitte, the U.S. imposes a higher national corporate tax rate than most countries around the world. The U.S. must incentivize businesses to stay in America, rather than relocate their headquarters overseas. Additionally, small businesses are taxed at a rate “as high as 44.6 percent.” This burden is unsustainable. Pro-growth tax reform can help American companies compete in the global economy and strengthen the U.S. economy.
In this letter sent to Congressional leadership, the business organizations argue that the existing tax code hinders economic growth, especially for small businesses. The letter also outlines how tax reform would positively affect small business:
Comprehensive tax reform can transform America’s underperforming economy into a high performance growth engine, creating jobs, raising wages, and strengthening the global competitiveness of America’s workers and businesses.
In addition, the organizations urged the House to begin the Fiscal Year 2018 budget resolution process, which would streamline tax reform.
One of the recipients of the letter is House Speaker Paul Ryan, who spoke last week about how tax reform is necessary for American businesses through his message of “building a confident America.” Ryan’s “confident America” entails job creation, job security, and a more prosperous economy. In order to reap the benefits of tax reform, however, Ryan stressed that it must remain permanent.
Wednesday’s letter echoes Ryan’s confidence and optimism for the American economy, stating:
The federal tax code has weighed America down for far too long. You now have a once-in-a-generation opportunity to substantially improve America’s economy.
Whether Congress can follow the legislative path to tax reform is currently unclear. However, American businesses know that growth focused, comprehensive tax reform is in the best interest of all Americans. The potential for sensible tax reform to unleash American innovation and accelerate job growth is well known. We just need to get it done.
