The Coalition for Fair Effective Tax Rates and the RATE Coalition today released the following joint statement:
The tax code is broken and businesses of all kinds – large and small, corporations and mom-and-pop shops – agree: what’s needed is comprehensive tax reform that simplifies the system by lowering individual and corporate rates and eliminating distorting tax preferences.
We strongly support the efforts of the chairmen of the tax-writing committees in Congress, Senator Max Baucus (D-MT) and Congressman Dave Camp (R-MI), to pass bipartisan comprehensive tax reform legislation. A simpler, fairer code, with lower rates for both corporations and businesses that pay taxes using individual rates, will help businesses to expand and create jobs, which boosts the overall economy.
Today’s tax code, last updated in 1986, is riddled with exemptions that reward some businesses and penalize others. It’s unfair for some industries to pay a higher effective tax rate than others. What’s more, the tax code should help businesses grow without benefiting certain business activities over others. A more competitive, modern tax system will attract much-needed jobs back to the United States and better enable American businesses to compete in the global marketplace. Revenue neutral, comprehensive tax reform will allow businesses to focus on the bottom line and not on decoding an out-of-date and increasingly complex tax code.
We applaud policymakers such as Sen. Baucus and Rep. Camp for leading on this important issue. Reform that promotes lower tax rates instead of special tax breaks will benefit the American people. We stand with the chairmen as they work to pass comprehensive tax reform and grow our economy.