DALLAS – As House Speaker Paul Ryan works to save tax reform, he must focus on attaining at least three basic tax changes to jumpstart the U.S. economy.
In a statement, Institute for Policy Innovation (IPI) president Tom Giovanetti said:
“Although comprehensive tax reform is needed, Congress can’t even seem to execute its most basic function: Pass 12 legally required appropriations bills before October 1. Therefore, it seems unlikely it can take on additional, comprehensive reforms like tax reform
The American people are growing increasingly cynical about politicians who promise comprehensive reforms over repeated election cycles, and then deliver nothing. As much as we policy nerds like to design comprehensive reforms and see them implemented, it’s time for Congress and the White House to do the most important things.
If comprehensive reform is impossible, Congress must focus on the most important elements that would contribute to jump-starting economic growth. If comprehensive reform is the goal, the reform process must not bury key growth-inducing elements.
Three basic elements would do the trick:
- Immediate business expensing, since nothing encourages businesses to invest like immediate business expensing, and doing away with depreciation;
- Cutting the corporate income tax rate from the current, uncompetitive rate of 35 percent to something under 25 percent, which would make a significant improvement in U.S. global competitiveness; and
- Fixing our dysfunctional international tax regime and encouraging the repatriation of trillions of dollars in capital stranded overseas to bring home welcome new investment capital, as well as new federal revenue.
Encouraging faster economic growth should be the priority, and we can’t afford to lose that opportunity because it’s difficult to accomplish comprehensive tax reform.”
The Institute for Policy Innovation (IPI) is an independent, nonprofit public policy organization based in Dallas. IPI president Tom Giovanetti is available for interview by contacting Erin Humiston at (972) 874-5139, or erin@IPI.org.