Tax Coalition Urges House Ways and Means Tax Policy Subcommittee to Embrace Comprehensive Reform
For Immediate Release:
WASHINGTON, D.C., May 24, 2016 – The below letter was sent to the members of the House Ways and Means Tax Policy Subcommittee urging them to pass comprehensive tax reform.
May 24, 2016
Dear Members of the House Ways and Means Tax Policy Subcommittee:
The Coalition for Fair Effective Tax Rates congratulates you for holding this week’s hearing about Perspectives on the Need for Tax Reform. We are eager to work with you to overhaul the U.S. Tax Code. As you collect views on this important topic, we urge you to place comprehensive tax reform among your top priorities.
The Coalition believes that a comprehensive approach must be taken to fix our broken federal income tax code. The tax system needs to be simplified and the tax base should be broadened. In addition, tax rates should be lowered both for corporations and for the vast majority of businesses that pay taxes through the individual rate system.
Indeed, true reform must address tax laws that impact both corporations and “pass-through” entities that pay taxes using individual rates. Repairing the tax system of one without the other would be woefully incomplete.
The current Tax Code is needlessly complicated and unfair. Large disparities exist between industries in the amount of taxes they pay – their effective tax rates. Our Coalition believes that tax reform should be viewed through the lens of effective tax rates. Successful reform should be measured by lawmakers’ ability to reduce these discrepancies and create a more level playing field for businesses of all sizes across all industry sectors.
The disparity in effective tax rates paid by different U.S. industries is huge. According to the U.S. Treasury, effective actual federal corporate tax rates paid between 2007 and 2010 ranged from 30.3 percent by construction firms, 29.4 percent by services companies and 27.9 percent by wholesaler-distributors and retailers to 17.7 percent by leasing companies and 14.5 percent by utilities. The gap is simply unfair.
The Coalition for Fair Effective Tax Rates is a diverse group of national, regional and state associations representing more than 1,500,000 businesses, large and small, that support comprehensive tax reform. The importance of lowering tax rates for both corporations and pass through entities while also reducing disparities in effective tax rates is what binds us together.
Thank you in advance for pressing forward with tax reform and remembering to keep your focus on effective tax rates, the amount businesses actually pay in taxes.
We look forward to working with you to develop and eventually approve comprehensive tax reform.
Management Committee, Coalition for Fair Effective Tax Rates:
Retail Industry Leaders Association, Chair
Associated Builders & Contractors
Associated General Contractors
International Foodservice Distributors Association
International Franchise Association
National Association of Wholesaler-Distributors
Small Business and Entrepreneurship Council
A full list of coalition members was attached to this letter.