White House Still Wrong on Corporate Tax Reform
November 6, 2014
The midterm elections took place this week and with the lame duck session of Congress coming next week (click here to see TPA’s wish list for that session) there are already warning signs of troubling policy initiatives that taxpayers may get from these rushed remaining congressional working days of the year.
For example, tomorrow the White House will be meeting with Senate and House leaders to discuss the long-term agenda for the new Congress, but also the short-term agenda for the lame duck. There is already word on a move with corporate taxes that will be bad for taxpayers and small businesses.
Speaking yesterday in his first press conference since the midterm elections, President Obama once again called for a transportation bill that would be paid for by corporate tax reform:
“Traditionally, both parties have been for creating jobs rebuilding our infrastructure — our roads, bridges, ports, waterways. I think we can hone in on a way to pay for it through tax reform that closes loopholes and makes it more attractive for companies to create jobs here in the United States.”
It is frustrating and quite astonishing that less than 24 hours after the President’s agenda was strongly rebuked by the American voters, the President would use a press conference to recycle ideas that are not only out of touch, but also would do nothing to solve the real problem that needs fixing, the nation’s corporate tax rate. The U.S. corporate tax rate continues to be the highest in the world, but the answer to corporate tax reform has nothing to do with giving more money to Congress to fund the transportation budget.
We are specifically concerned about proposals that seek to make changes to our tax laws as a means to pay for projects that are totally unrelated to tax reform. Attempts like these are a step in the wrong direction. Their passage will do nothing to help America’s job creators. In fact, it will make it even more difficult to achieve true tax reform.
TPA urges Congressional leaders in both chambers and on both sides of the aisle to reject the Presidents renewed calls for corporate tax reform aimed at funding government spending on things like a transportation bill. Corporate tax reform needs to be about solutions that benefit taxpayers and the economy, not increased government spending.