At his weekly press briefing yesterday, Speaker Ryan made the case for reforming our broken tax code to make it simpler, flatter, and fairer.
“Our goal, and I feel very confident we can meet this goal, is calendar year 2017 for tax reform. And I think we’re making good progress,” he told reporters.
Progress is indeed underway. The House Ways and Means Committee held a major hearing yesterday to discuss what pro-growth tax reform looks like. Next Tuesday, the committee will host another hearing to specifically look at how we can make our tax system more competitive and prevent jobs from moving overseas.
As the speaker noted, fundamental tax reform is about creating jobs, increasing competitiveness, and growing our economy.
“We’re going through the process of looking at what is the best way to reform the tax code and lower tax rates for businesses, and to make the American tax system internationally competitive,” he explained. “Right now it is literally one of the worst tax systems in the industrialized world. We’re losing companies who are becoming foreign companies. We have an incentive that basically tells companies: Outsource your manufacturing. Why on earth are we doing that?”
Here’s what he means. Today, the federal government taxes successful small businesses upwards of 44.6 percent—and that’s before you pay state and local taxes. Meanwhile, our foreign competitors are taxing their businesses closer to 20 and 25 percent. This makes it nearly impossible for our businesses to compete.
Tax reform must include a lower corporate tax rate so we can level the playing field and drive American competitiveness. The nonpartisan Tax Foundation already found that our blueprint would create millions of full time jobs and leapfrog our economy to the front of the pack. That’s why, after 31 years, it’s time to finally get this done.
To learn more, visit speaker.gov or check out the links below.