It’s been twenty-eight years since the United States did the last major revision of the tax code in 1986. Imagine how much the economy has changed in those twenty-eight years. On that basis alone it’s inconceivable that we have the right tax code today for a modern economy.
IPI has been documenting how the U.S. has fallen behind our international competitors, who have reformed and reduced their business tax regimes not once but several times since 1986.
At a press conference earlier today, House Ways & Means Committee Chairman Dave Camp released the details of his much-anticipated tax reform plan.
“Much anticipated” by tax reform geeks, anyway. Perhaps not so highly anticipated by timid Congressional leadership, who seem to be afraid to do anything that might change their current political calculus, as if that is what the American people elected them to do.
With an economy that seems to be perpetually struggling and projected growth rates that just don’t match up with American expectations, if Congressional leadership and the White House don’t think growing the economy and creating jobs are worth political risks, a pox on both their houses.
You can hear Chairman Camp talk about his tax reform proposal and even ask questions next Tuesday, March 4, at IPI’s Capitol Hill briefing “A Tax Code for a Modern Economy.” In the meantime, some initial observations:
IPI has been documenting how the U.S. has fallen behind our international competitors, who have reformed and reduced their business tax regimes not once but several times since 1986.
At a press conference earlier today, House Ways & Means Committee Chairman Dave Camp released the details of his much-anticipated tax reform plan.
“Much anticipated” by tax reform geeks, anyway. Perhaps not so highly anticipated by timid Congressional leadership, who seem to be afraid to do anything that might change their current political calculus, as if that is what the American people elected them to do.
With an economy that seems to be perpetually struggling and projected growth rates that just don’t match up with American expectations, if Congressional leadership and the White House don’t think growing the economy and creating jobs are worth political risks, a pox on both their houses.
You can hear Chairman Camp talk about his tax reform proposal and even ask questions next Tuesday, March 4, at IPI’s Capitol Hill briefing “A Tax Code for a Modern Economy.” In the meantime, some initial observations:
- If anything, Camp’s plan appears to be more ambitious than some earlier rumors had suggested. He gets the corporate tax rate down to 25% and collapses 7 individual tax rates down to three (he claims two, but the 10% surtax on very high income individuals amounts to a third rate).
- Camp retains and makes permanent the R&D tax credit, and eliminates the Alternative Minimum Tax (AMT), both of which are long overdue.
- It’s praiseworthy that the plan is accompanied by a dynamic analysis as well as the usual static analysis. Static analysis is always misleading because it purposely does not account for behavioral changes of businesses and consumers as a result of changes in the tax code. You can find many examples of dynamic analysis at IPI’s website, especially this explanation of dynamic analysis.
It’s too soon to condemn or to jump on board all of the trade-offs made in this plan, and of course any tax reform plan is going to have details that are deal-killers for specific groups, but Mr. Camp’s focus on tax reform as a major initiative to drive greater economic growth and job creation is refreshing and admirable. It’s an example of congressional Republicans being for something instead of just against things, and it throws into sharp relief the lack of vision that seems to characterize the current congressional leadership.
Chairman Camp’s tax reform website contains links to the documents related to his proposal.
If you’re in the nation’s capital, don’t forget to join IPI next Tuesday, March 4, at IPI’s Capitol Hill briefing “A Tax Code for a Modern Economy.” After Chairman Camp speaks and takes questions, you’ll get to listen to a panel discussion featuring experts from industry and from IPI discussing Chairman Camp’s proposal and how they think it would impact their industries and the overall economy. You won’t want to miss it.
Chairman Camp’s tax reform website contains links to the documents related to his proposal.
If you’re in the nation’s capital, don’t forget to join IPI next Tuesday, March 4, at IPI’s Capitol Hill briefing “A Tax Code for a Modern Economy.” After Chairman Camp speaks and takes questions, you’ll get to listen to a panel discussion featuring experts from industry and from IPI discussing Chairman Camp’s proposal and how they think it would impact their industries and the overall economy. You won’t want to miss it.