Overview

The U.S. tax code is confusing and complex. The United States has one of the highest corporate tax rates in the world and the rates many American small businesses pay are also comparatively high. U.S. job creators also face high tax compliance burdens. According to the Tax Foundation, in 2016, (the latest year data is available), it took Americans 8.9 billion hours to prepare and file their tax returns, imposing a $409 billion cost on the U.S. economy. Business taxes took up about four million hours as a cost of nearly $200 billion. Leaders in Washington must reduce the overall tax and compliance burden and establish a simpler, flatter and fairer system that will encourage investment and innovation. They must also avoid passing piecemeal, temporary tax plans that breed uncertainty and cause employers to put off decisions about expanding their business or hiring more workers.

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Why it Matters

The United States is burdened with a large national debt, persistent annual federal budget deficits and unsustainable entitlement programs. Raising taxes will not solve these problems and will only make it harder for U.S. companies to create jobs, invest in expanding their business, provide quality employee benefits and compete against their global counterparts. Establishing more competitive tax rates for small businesses, corporations and individuals will make the United States a more attractive place to invest, live and work. A stable, fairer tax system that encourages risk and investment will spur greater economic growth, which will produce higher revenues for the federal government.

Our Principles

Policymakers must –

  • Ensure a globally competitive North American manufacturing industry by reducing, not increasing, the tax burden on members of the U.S. metals industry.
  • Ensure the 28 million businesses that pay their federal taxes through the individual income tax code are treated equitably and fairly by passing comprehensive, not corporate-only, tax reform.
  • Ensure the tax code does not benefit certain individuals, businesses or industries over others.
  • Allow U.S. companies that have a global footprint to bring back their overseas profits without double taxation.
  • Put in place permanent policies that foster certainty and avoid temporary fixes that breed business and individual taxpayer anxiety

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