TPA Supports The Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012
There is no denying that the federal tax code is complicated. What many people don’t know is that real tax reform can be difficult as legislation gets bogged down in technical hurdles. To address this problem, Rules Committee Chairman David Dreier (R-Calif.) and Ways and Means Committee Chairman Dave Camp (R-Mich.) introduced The Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012 (H.R. 6169), which will “provide a clear pathway to comprehensive tax reforms in 2013. By implementing expedited procedures, this bill will enable lawmakers in both the House and Senate to overcome multiple technical hurdles that often cause bills to languish during the legislative process. ‘The United States tax code is far too complex and bloated. It forces American citizens and small business owners to focus on filling out tax forms instead of tending to their families and businesses. It is clear to lawmakers on both sides of the aisle that real, fundamental reforms to our tax code are long overdue. In fact, our revenue laws have not been substantially reformed in 50 years,’ Chairman Dreier said.” The Taxpayers Protection Alliance proudly supports this legislation.
Read full letter below:
July 31, 2012
The Honorable David Dreier
Dear Chairman Dreier,
The Taxpayers Protection Alliance (TPA) strongly supports The Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012 (H.R. 6169). This legislation is a common sense approach to providing a distinct pathway to comprehensive tax reforms next year. Bills in Congress face many technical hurdles and often languish and never see the light of day. In a weak economy it is critical that any tax reform, especially reducing the corporate tax rate be expedited and come to a floor vote as quickly as possible.
America was built on the ability to out-compete and out-innovate the rest of the world. Now, both of these advantages are under threat with excessive taxation and tax compliance that fills volumes of books and billions of hours of tax preparation. The corporate tax rate of 35 percent (the highest in the world) is an example of an outdated tax system and a burden this country can no longer bear.
Combine the highest corporate tax rate with the $6 billion companies spend on tax compliance each year are unnecessary impediments to growth. At a time of economic stagnation, America continues to maintain a tax code that discourages businesses from investing in the U.S. While other countries have worked to lower their tax rates and attract investment, America has kept their tax rates the same, and global businesses have taken note. Over the last few years, the Department of Commerce has noted that foreign direct investment in the U.S. has dropped significantly from $328 billion in 2008 to $194 billion in 2010.
A common-sense way to address this program is to clean up the tax code and lower the rate. If America simplifies the code and broadens the base, we can lower the rate to better compete with our major trading partners. A more competitive rate will bring investment and jobs, back to the U.S.
H.R. 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012, is a critical step in making the country more competitive and strengthening the economy.
David E. Williams
Recent PostsSUMMER READING: CORPORATE TAX REFORM