On February 14, the American Council for Capital Formation hosted a forum on tax reform with U.S. House Ways and Means Committee Chairman Kevin Brady (R-TX). Chairman Brady shared his perspective on the upcoming debate over tax reform with Washington business and trade association leaders, nonprofit groups, and members of the press.
Brady opened the discussion by noting that a lot of crucial elements have fallen into place to really pave the way for tax reform since his last visit with the ACCF in April 2016.
He highlighted specific proposals under the GOP blueprint for tax reform. Brady said it also helps to have a president who is committed to advancing a tax reform package designed to grow jobs and increase wages.
For individuals, fairness and simplicity are among the key elements in the tax reform blueprint — so simple that 9 out of 10 Americans should be able to file using a postcard-style system, Brady said.
On the capital side, the blueprint offers the lowest corporate rates in history and the lowest pass-through rates since the 1930s. Brady insisted that Washington needs to take less business earnings so that companies can invest more in creating jobs and expanding. Brady said the plan supports full-expensing, regardless of the size of the business, in order to foster investment in buildings, equipment, software, and technology to make the workforce more productive and efficient.
Overseas competitors, including China, Europe, Canada, and Mexico are beating the United States with lower corporate rates. When U.S. companies compete globally, the tax rate on bringing those overseas earnings back home should be zero.
Brady also noted that 160 countries employ some form of a border adjustment in their tax systems and that American-made products are at a disadvantage as a result. Brady pledged to address that unfairness in the pending tax reform push – which he said he fully expects to happen in 2017. “Border adjustability may be new to the United States, but it’s not to countries around the world and is critical to the blueprint,” Brady said.
Watch the full discussion here: