Today is Tax Day, and it is also Tax Freedom Day, the day the average American has earned enough to finally pay this year’s federal, state, and local tax bill. Compare that to the year 1900 when Tax Freedom Day fell on January 22nd. According to the Tax Foundation, unless Washington takes action, tax increases “could push Tax Freedom Day to the end of April or beyond.”
Our tax system is complex and confusing, and it discourages job growth and overall competitiveness. In order for the future of America to be stable and secure, we must address fundamental tax reform. So what does that look like? I adhere to the following simple truths when it comes to tax reform:
Our Tax Code Should Be FAIR. No American should be able to game the system to pay less than they should. We should remove lobbyist loopholes, lower rates, and promote economic growth.
Our Tax Code Should be SIMPLE. Together, individuals and businesses spend over six billion hours and 160 billion dollars every year just trying to understand and comply with the tax code. Our tax code should be clear, easy and simple.
Our Tax Code Should be COMPETITIVE. Raising taxes on job-creators and small businesses would prevent them from hiring new workers or investing at a time when we need more economic growth. Likewise, provisions in our tax system - like the death tax - discourage the American principle of working hard and passing something on to your children. Our tax code should allow businesses to compete fairly in the marketplace and reward those who play by the rules.
I have supported several solutions that would help simplify our tax code, including eliminating penalties, creating an optional flat tax, closing loopholes, and making the corporate tax rate competitive. You can read about those bills here.