Taxpayers Protection Alliance Delivers Coalition Letter On Tax Reform To Chairman Baucus and Chairman Camp
May 31, 2013
This morning the Taxpayers Protection Alliance delivered a Joint letter on Tax Reform to the offices of Senate Finance Committee Chairman Max Baucus (D-Mont.) and House Ways and Means Committee Chairman Dave Camp (R-Mich.). We are joined in the letter by Taxpayers Protection Alliance, 60 Plus Association, Americans for Job Security, Americans for Tax Reform, Center for Individual Freedom, Citizens Against Government Waste, Competitive Enterprise Institute, Less Government, Let Freedom Ring, National Taxpayers Union, R Street Institute,and Small Business & Entrepreneurship Council in calling for comprhensive tax reform that benefits individuals and businesses nationwide.
Friday, May 31, 2013
Dear Chairman Baucus and Chairman Camp:
The undersigned groups representing millions of taxpayers and allied educational bodies write to express our support for Congressional action on tax reform. In particular, we are encouraged by the work being done in your respective committees to make comprehensive reform a legislative priority this year, as underscored by your recent launch of taxreform.gov. We are specifically encouraged by your desire to simplify the tax code and lower rates.
As the recent IRS scandal has demonstrated, the United States’ burdensome and complicated tax code leaves too many U.S. businesses and individuals at the mercy of government bureaucrats. Many are unable to accurately file taxes on their own, relying instead on hired professionals and tax software, while others are able to leverage the complexity to game the system. Simply put, the system is broken and unfair to average Americans and business owners.
Additionally, while the need for simplification is clear, any reform to the tax code must also be accompanied by an overall reduction in statutory rates. At the start of this year, as part of the fiscal cliff agreement, tax rates on many American small businesses jumped to an incredible 39.6 percent and, on April 1, the U.S. celebrated a full year of having the world’s highest corporate income tax at 35 percent (nearly 40 percent when state and local tax rates are included). As America has stood still on reforming our tax code, other nations have aggressively worked to reform their business tax codes resulting in an average rate of just 25 percent among OECD nations – a full 10 percentage points lower than the current U.S. corporate rate.
These confiscatory tax rates do real harm to the U.S. economy. In 2013 alone, GDP may be more than 2.0 percentage points lower because of our high corporate rate. Over the long term this could cost the U.S. nearly $350 billion a year. Our high federal tax rates also threaten the incomes of our retirees by depressing investment accounts and harm workers through lower wages and fewer opportunities to find employment. Over the long run wages could be a full percentage point lower in real terms if the U.S. corporate rate remains this far out of step with the rest of the world.
As you have suggested, our tax code is pulling the U.S. off the path to recovery. Comprehensive tax reform – if done properly, with simplified rules and significantly lower rates – would diminish the burdens on U.S. job creators and would spur economic growth and employment. We are encouraged by the work done so far by the Senate Finance and House Ways & Means Committees and urge you and your fellow committee members to move swiftly towards enacting such reform.
David Williams, President, Taxpayers Protection Alliance
Jim Martin, Chairman, 60 Plus Association
Stephen DeMaura, President, Americans for Job Security
Grover Norquist, President, Americans for Tax Reform
Jeffrey Mazzella, President, Center for Individual Freedom
Thomas A. Schatz, President, Citizens Against Government Waste
Iain Murray, Vice President, Competitive Enterprise Institute
Seton Motley, President, Less Government
Colin Hanna, President, Let Freedom Ring
Duane Parde, President, National Taxpayers Union
Andrew Moylan, Senior Fellow & Outreach Director, R Street Institute
Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council