Today we have a tax code that is 70,000 pages long, riddled with loopholes, special interest exemptions, and deductions. The average citizen shouldn’t have to hire someone to do their taxes, and yet every April that is exactly what happens.
We need to take a comprehensive look at our tax code and drastically simplify it. We must stop picking winners and losers through the tax code. We need to keep the current progressive tax system, but make it simple enough so that Americans can do their own taxes and every American pays some amount in taxes. That way we can lower overall rates, reduce the regulatory and compliance burden on American citizens and companies, but still have the revenue we need to defend our nation and our national interests, take care of our most vulnerable, and invest in the next generation of Americans by finding a path toward sustainable, responsible economic growth and new jobs.
The corporate tax code needs to be similarly streamlined. By eliminating loopholes, credits, and deductions and lowering the overall corporate tax rate, we can level the playing field for corporations in America, make American companies more competitive globally, and still bring in comparable amounts of revenue to the U.S. Treasury.
We should also move to a territorial tax system, which would eliminate the incentive for companies to relocate overseas or otherwise become foreign companies. It would also allow a number of U.S. companies to bring profits they earn overseas back to the United States and invest it here to create new jobs and opportunities for Americans.
Twenty-eight of the 34 countries in the OECD (Organization for Economic Cooperation and Development) and some of America’s biggest trading partners (including all other G8 countries) have adopted some form of a territorial tax system. Our current system, which hasn’t been overhauled in thirty years despite a vastly different global economy, is out of date. This is another example of where the dysfunction in Washington has hurt the American economy, workers, and businesses.
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