The United States needs to give tax breaks to businesses so they will stop fleeing the country for cheaper conditions overseas, Rep. Kevin Brady told Newsmax TV.
“Here in the United States we’re losing out because of the high taxes we have today,” the deputy whip said.
He called President Barack Obama’s plan to raise the taxes of the wealthiest Americans “exactly wrong.”
“You can’t tax your way back to a balanced budget. You certainly can’t tax your way back to a better economy,” said the Texas Republican, who is vice chairman of the Joint Economic Committee.
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He said the recipe for turning the country’s economy around involved “lower taxes, less regulation, a better environment” for business.
“Our biggest problem right now is that we’ve got business with capital who want to invest back in this country but no longer feel confident,” he said.
Brady said companies are afraid that if they make a profit or try to build better facilities, they’ll be “punished” by higher taxes, and so they seek ways to save money overseas.
“The trick for us is to remove barriers,” he said. “Allow these companies to know that if they invest in America they aren’t losing opportunities around the world,” he said.
He said that in the current climate, business leaders are reluctant to spend any of their cash.
“Their job is to create profits, create jobs, create investment. Right now they are probably wise to look for and seek a better environment,” he said. “We’re determined to give them a better environment to invest in.”
Asked if he thought Obama was genuine in his expressed willingness to consider simplifying the tax code, Brady challenged the president to follow through
“Mr. President, send a tax plan to Congress, one that you believe in for the future of America, and then we’ll sit down and compare the difference,” Brady told Newsmax TV.
“Let’s have a competition of ideas,” he said. “I guarantee at the end of the day, it will be a lower, flatter, fairer tax that prevails.”
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