Washington, DC – The American Council for Capital Formation (ACCF) applauded today’s tax plan released by the White House and House Republicans. The elements crafted by the Big Six are critical to unlocking America’s economy and achieving much-needed growth.
Statement from the American Council for Capital Formation
“The latest proposal by the Big Six leaders goes a long way towards righting some of the wrongs in the current federal tax code. Lowering rates not only for large businesses but for small businesses as well is the right approach given the latter are a critical economic cog.
“Just as critical is the leaders’ decisive move to change the tax treatment of income earned abroad by multinational companies. Today, the worldwide tax system employed by the U.S. tax code levies tax on all income earned by U.S.-based firms, regardless of where that income was earned, placing companies here at home at a marked disadvantage relative to their foreign competitors. A transition to a competitive territorial system will prevent double taxation, bring back U.S. dollars that remain trapped overseas, reduce the incentive for corporate inversions, and inspire greater economic certainty and confidence by aligning our nation’s tax code with the rest of the world.
“Finally, full expensing is vital for the nation’s economic growth and to encourage investment by businesses. It is our hope that congressional negotiators work to make these provisions permanent. All of these elements are important for any tax reform proposal that seeks to unlock the potential of the American economy by building a tax code oriented toward growth. The Trump administration and lawmakers need to prioritize getting tax reform accomplished in 2017.”
The American Council for Capital Formation is a nonprofit, nonpartisan economic policy organization dedicated to the advocacy of pro-growth tax, energy, environmental, regulatory, trade and economic policies that encourage saving and investment.