The Friday 5
July 28, 2017
The Friday 5
August 4, 2017Next Is Tax Reform!
It is time for Congress to turn its attention to tax reform.
Any business that pays taxes (which would be all of them) knows that our tax system is incredibly complex, hopelessly inefficient, and slows our economy. Small businesses, whose owners rely largely on pass-through income reflected on their personal taxes, are especially hard-hit by some of the highest corporate tax rates in the world.
Congress has the opportunity to update and reform our tax code for the first time in a generation. American businesses and workers are suffering as a result of decades of tinkering and tampering. Our tax code hasn’t been reformed since before credit cards, cell phones, and the Internet were widely available. Think about how our economy has changed since the Reagan Administration.
There are an estimated 70,000 pages of tax code and regulations – a number the GOP leadership says is triple the amount in 1986. The Tax Foundation estimates tax compliance costs our economy $409 billion and 8.9 billion hours each year.
We know that any substantive tax reform will require compromise, bi-partisan resolve, and serious discussions by serious people. We stand ready to assist our local Congressmen and Senators: Lindsey Graham, Tim Scott, Trey Gowdy, Jeff Duncan, and Ralph Norman in that debate.
The Chambers we represent have a diverse membership of manufacturers, small retailers, restaurants, professional firms, and even farms. We know there will be winners and losers amongst our members, but we want Congress to focus on the “one simple test” that U.S. Chamber President Tom Donohue outlined in his open letter to Congress:
“… will it spur economic growth? If it does, we will be for it. I encourage members of Congress – all of whom have their pet issues on tax reform – to judge proposed legislation based on growth.”
The barriers to a compromise span the political spectrum. Entrenched interests on the left and the right mean both parties have trouble compromising with themselves, never mind the other party. But all factions claim to support small business, so we call on them to put aside partisan differences and work for what’s best for the American economy.
Click here to tell your federal representatives to begin the Tax Reform Debate today!
And when Congress begins its work, we call on state lawmakers to re-start the same debate that was started last summer with the House ad hoc Tax Reform Study Committee. The same piecemeal approach to tax law that plagues the national debate hurts South Carolina small business and stunts the growth of our entrepreneurs.
This issue has bi-partisan support and, as I stated above, we have a once-in-a-generation chance to reform our tax code, energize small business, and jump-start our economy.
