The first hearings are being held in the US House of Representatives this week on what shape comprehensive tax reform will take, and they’re long overdue. While other countries have taken steps to modernize and improve their tax codes, the United States has done nothing. Our current tax code is not only outdated, it has one of the highest tax rates in the world and encourages business investment and job creation overseas.
We need to bring the U.S. in line with the rest of the world. American businesses need an updated tax code that levels the playing field so they can compete with products and services from around the world. One of the best chances for us to do that is the House Blueprint as championed by the White House and Congress, which offers long overdue changes that will foster growth and prosperity for the American economy and workforce.
The House Blueprint creates a level playing field for U.S. businesses. Business tax rates would be more affordable and products made here would no longer be taxed at higher rates than products made overseas, which is similar to other “border adjustment” policies used by over 160 countries. However, the Border Adjustment tax stands as one of the most contentious parts of the House Blueprint, with some in the Senate standing against it.
However, as we’d noted before, as opposed to complaints about the border adjustment tax costing families money, as part of a comprehensive package, the plan could save families nearly $4600 annually.
Proponents of the House Blueprint on taxes note that these tax reforms will help businesses of all sizes invest in their companies and employees, adding American jobs to the tune of 1.7 million new jobs and an estimated 8% increase in pay.
Changes to the tax code are critical to the future of the U.S. And the House Blueprint is the start we need for Congress to work on fixing the imbalance and to better position our nation to grow and succeed.