There is a consensus that federal tax reform is desperately needed. That’s where the consensus ends. We believe what makes sense is for the Trump administration and Congress to work together to achieve a few specific reforms of a burdensome and outdated tax code than try to undertake a massive tax reform package that grabs headlines for a few days but ultimately fails on Capitol Hill.
High on the priority list should be the reduction of the corporate tax rate to 15 percent. For example, American manufacturers are taxed at the highest statutory tax rate among developed nations in the world, and the burden is even relatively higher for small businesses. Reducing the tax rate will free up capital for expansion, investment and job creation. In order for American companies to compete in global markets, their needs to be a more level playing field.
For individual taxpayers we generally support the idea — advanced in the 1980’s by groups like Empower America — of a fairer and flatter model with more flexibility, even it means fewer deductions. The tax code’s complexity leads to confusion, frustration and suspicion that the code is stacked in favor of the “other guy.” An injection of simplicity, clarity and commonsense would be applauded by both businesses and taxpayers.
Polls show that more than other groups of Americans, Latinos have no qualms about paying their taxes and supporting their government. But they deserve to know that their government respects their hard-earned money enough to come up with a tax system that is fairer and more efficient that the one we have now. Let’s commit ourselves to that goal.