WASHINGTON, D.C., April 15, 2015 –The below letter was sent today, on tax day, to Chairman Orrin Hatch of the Senate Finance Committee and Chairman Paul Ryan of the House Ways and Means Committee by the Coalition for Fair Effective Tax Rates.
April 15, 2015
The Honorable Orrin Hatch The Honorable Paul Ryan
Chairman, Committee on Finance Chairman, Committee on Ways & Means
United States Senate U.S. House of Representatives
Washington, DC 20510 Washington, DC 20515
Dear Chairman Hatch and Chairman Ryan:
We were disappointed and very surprised to learn from press reports on Monday about a letter received later in the day by individual members of the Coalition for Fair Effective Tax Rates (CFETR) seeking their input on tax reform as it relates to pass-through entities.
Effective tax rate parity between C Corporations and pass-through entities defines true tax reform in our view. Effective tax rate parity cannot be achieved if the tax rate on C Corporations is reduced by nearly 30 percent giving them a 15 point advantage over pass-through entities.
Rewriting our tax code so that all businesses receive a fair shake is what led to the formation of the Coalition for Fair Effective Tax Rates. The only way to accomplish this is through a comprehensive approach to tax reform. We believe that we have clearly and consistently communicated this position to you and your staffs and we reiterate it here. As a practical reality no combination of credits, deductions, or exclusions will bring about tax rate parity and produce a fair, simple, transparent and pro-growth tax code.
The President’s approach to tax reform, seemingly endorsed by your letter, is contrary to the aim of true tax reform and contrary to the mission of this coalition. Real tax reform means a tax code that no longer picks winners and losers depending on how a business is legally structured or its particular industry.
As discussed in our past meetings, we simply cannot support an approach to tax reform that does not help pass-through entities as well as C Corporations.
Congress should not consider an approach that would disadvantage businesses that employ two thirds of American workers, create more jobs, and pay more in taxes.
We look forward to a continued dialogue.
The Coalition for Fair Effective Tax Rates Management Committee:
Associated Builders and Contractors
Associated General Contractors
International Foodservice Distributors Association
International Franchise Association
National Association of Wholesaler-Distributors
National Federation of Independent Business
Retail Industry Leaders Association
Small Business & Entrepreneurship Council