Center for Freedom and Prosperity
For Immediate Release
Wednesday, September 27, 2017
CF&P Praises Tax Reform Framework
Follows Pro-Growth Principles, But Detailed Plan Will Need to Tread Carefully on Global Tax Rules
(Washington, D.C., Wednesday, September 27, 2017) The Center for Freedom & Prosperity (CF&P) is pleased that the “Big Six” today released a pro-growth framework for tax reform. The pressure is now on Congress to finalize the details and deliver a bold plan for the American people.
While President Trump’s call for a hyper-competitive 15 percent corporate tax rate was preferable, slashing the current rate to 20 percent and removing the anchor from U.S. businesses that is the current worldwide tax system will supercharge the economy and lead to more jobs and higher wages for American workers. The U.S. has long been an outlier in taxing its companies on worldwide earnings, so the move to a territorial system is overdue. However, the inclusion of a global minimum tax provides cause for concern. Lawmakers must tread carefully such that they do not follow organizations like the EU and the OECD down the road of trying to thwart tax competition instead of focusing on maintaining a sensible tax system that will attract business and investment.
Other positive, pro-growth provisions of the framework include the elimination of the death tax, reduction of loopholes and carve-outs for special interests, and simplification of the individual tax code with lower rates for individuals and families. Unfortunately, there was no mention of territoriality on the individual side of the tax code, nor repeal of the destructive Foreign Account Tax Compliance Act that has devasted Americans working and living abroad. It is up to Congress to insist on these changes as part of any final plan.
CF&P President Andrew Quinlan commented, “The tax code hasn’t seen a major overhaul in over 30 years. We look forward to working with leaders at the White House and in Congress to finally deliver pro-growth tax reform that meets the high expectations of the American people.”
The Center for Freedom & Prosperity is a Washington, DC-based think-tank dedicated to the promotion of tax competition, financial privacy, and fiscal sovereignty.
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Andrew Quinlan can be reached at 202-285-0244, email@example.com