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The Top 10 Reasons for Tax Reform

The Top 10 Reasons for Tax Reform

By Wednesday, 18 October 2017 11:03 AM Current | Bio | Archive

With Wall Street confident in anticipation of real and meaningful tax reform, now is the time to turn confidence into reality.

It has been 31 years since America last enacted extensive tax reforms in rates, regulation, and deductions/loopholes. As a result, the U.S. economy took off and growth was seen in every sector of the economy — including service, manufacturing, and retail.

We're long overdue in unleashing the power of the greatest economy and workforce the world has ever known. The best way to do that is to put more money in the pockets of Americans instead of Uncle Sam’s. The "velocity of money," is the key to prosperity; meaning, money changing hands amongst the people is the driver of growth.

The White House has made a great case for tax reform. Here are the top 10 reasons for it:

1. The U.S. has the highest corporate income tax rate among the 35 industrialized Organization for Economic Co-operation and Development (OECD) countries, according to OECD findings.

2. The offshoring of corporate earnings has resulted in a loss of federal tax revenues as large as $767 billion, according to the Institute for Taxation and Economic Policy (ITEP).

3. The Internal Revenue Code contains hundreds of tax breaks worth almost $1.6 trillion, according to the Committee for a Responsible Federal Budget (crfb.org).

4. Complying with the tax code puts a $262 billion burden on the economy, according to the National Taxpayers Union (NTU/ntu.org).

5. Small businesses spend between $15 and $16 billion annually on tax compliance costs, according to the National Federaton of Independent Business (NFIB/nfib.com).

6. President Trump is proposing the biggest tax cut to small and medium-sized businesses in 80 years.

7. A staggering 94 percent of U.S. families require professional assitance to do their taxes.

8. Fifty-six percent of Americans believe they and their family are paying too much in taxes every year, according to a recent Politico.com/Morning Consult poll.

9. After President Reagan’s 1981 tax cuts, the economy created 14.8 million jobs over a five year period, based on data from the Bureau of Labor Statistics (BLS). Between 1982 and 1989, real per-capita-income rose by 18 percent, translating to an effective 20 percent increase in the standard of living.

10. The average American household income could increase between $4,000 and $9,000 per year in wages and salary alone by cutting the Federal corporate income tax rate from 35 percent to 20 percent. This is according to an analysis by the Council of Economic Advisors (CEA).

The U.S. is not competitive with the rest of the developed world when it comes to taxation. We are hamstringing ourselves, and as a result we hamper growth and we lose jobs.

A simpler, fairer, and more predictable tax policy, regulation and rates will immediately have positive effects on our economy. And, if Congress and the president see fit to make tax reforms retroactive to the beginning of January of 2017, the American economy will receive an immediate jump-start.

Tax reform is ripe for bipartisan support. There is plenty to negotiate over and compromise on.

Now is the time for all congressmen and senators of goodwill to come to the aid of their country. President Trump is the most transactional president we've had in decades.

This means deals can be had, if deals can be made. So let’s make a deal!

Bradley Blakeman was a member of President George W. Bush's senior White House staff from 2001 to 2004. He is also a frequent contributor to Fox News and Fox Business Channel. He currently is a Principal with the 1600group.com a consulting company. To read more of his reports — Click Here Now.

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Tax reform is ripe for bipartisan support. There is plenty to negotiate over and compromise on. It's time for all in Congress of goodwill to come to the aid of their country. President Trump is the most transactional president we've had in decades. Let’s make a deal!
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Wednesday, 18 October 2017 11:03 AM
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