WASHINGTON, D.C. — Today, the U.S. Chamber unveiled a new resource for policymakers outlining how American workers and businesses benefit from economic growth supported by competitive tax policy. Advancing pro-growth tax policy is a pillar of the Chamber’s Growth and Opportunity Imperative, launched in July, which calls on candidates and elected officials to focus on policies that achieve at least 3% economic growth annually.
“As Americans, we all want future generations to have more opportunities and a brighter future. The surest path to achieve this ambition is by growing our economy by at least 3% annually and securing a competitive U.S. tax system. Taxes may be inevitable, but their negative effects on our daily lives don’t have to be,” said Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber. “Wages rise and the standard of living for Americans improves when the U.S. tax system is competitive — allowing the American dream to become a reality for even more families and business owners.”
Sustained economic growth provides a foundation for broad-based prosperity. When the economy grows at 3% annually, someone who is born today will see America’s economy double in size by the time they are in their early 20s. At 2% growth, it will take until their mid-30s for the economy to double.
Recent polling from the Chamber shows a majority (80%) of voters are concerned that increasing taxes would result in higher prices and 93% believe American families and businesses are already paying enough in taxes.
Small businesses say that a competitive tax code means local economies grow and prosper, while workers across the country benefit from higher paychecks and more job opportunities.
In December 2017, Congress passed the Tax Cuts and Jobs Act (TCJA), the most comprehensive tax reform legislation since 1986. The TCJA significantly reduced and simplified the federal income tax burden for American families and workers and modernized the taxation of business income. The reforms led to GDP growth, wage increases, and job creation—outperforming pre-TCJA forecasts across economic indicators. However, many of the TCJA's key reforms are temporary and set to expire at the end of 2025, creating an increased sense of urgency for congressional action.
“With the stakes high for congressional candidates and elected officials to avoid potentially the largest tax increase in American history next year, it is imperative to study the facts about pro-growth tax policies that put America on the path to achieving faster sustained economic growth,” Bradley continued. “That’s why educating policymakers and bringing this message to their districts is the top priority for the Chamber in the weeks and months ahead.”
