I believe that America’s tax system should promote family saving and investment and encourage economic growth through simplicity and fairness. Instead, the current system is laden with inherent disincentives against working and investing.
The tax code is also unnecessarily complex. In fact, studies have shown that Americans annually spend billions of dollars and hours to comply with the it. In short, the current tax system stifles opportunity for American families and businesses. Simplifying the tax code would stimulate job growth and help improve the economy (more on this effort below).
Earlier this year, the president submitted his annual budget proposal to Congress, and unfortunately, it largely perpetuates (in many ways, worsens) a tax structure that discourages job growth and erodes tax home pay. It ignores America's financial crisis, increases the tax burden that working families currently shoulder and doubles down on the irresponsible spending habits of the federal government.
The president’s budget would:
•Increase spending by $2.5 trillion.
•Grow deficits to $793 billion in 10 yrs.
•Impose $38 billion in new tax increases on our energy industry.
•Pile on $1 trillion in new taxes on small businesses.
So what is Congress doing to change the tax code?
Last year, we took an important step toward reforming the tax code by passing legislation that created $629 billion of tax relief for families and businesses and will provide some relief for Americans as they file their taxes this year. Because of this effort, taxpayers have more ability to:
Deduct their state and local sales taxes
Lower the cost of commuting to work
Grow their small businesses
Support the charities that are important to them
And save for college and retirement
Despite this win, fundamental tax reform is still needed and there are multiple ideas being circulated about what this solution should look like. As we move forward with a concise proposal to reform the way individuals and businesses are taxed in America, we must keep some guiding principles in mind:
- The tax code must be simplified, and it must be fair. The complexity of today's tax code puts a time-consuming burden on individuals, families and small businesses. We have to change that.
- We must lower rates for everybody, not just those who can access the loopholes that exist in today's system.
- Small and large businesses deserve a competitive system that is built upon fair and competitive tax rates.
- Our tax code should encourage businesses to locate and stay in the United States, which will create jobs and grow our economy. An unfavorable tax code encourages the current trend of businesses and jobs moving overseas.
- We cannot be afraid of innovative changes as we design a tax code built for economic growth.
- Most importantly, our primary goal must be to grow the economy - not the government. We will put a stop to the trend of raising taxes to support Washington's spending problem.
I'm curious to hear your thoughts and ideas about reforming America's tax code, so let's continue the conversation. Call one of our offices, send me an email or follow us on Facebook to stay engaged on this or any other issue of interest to you.
More on Tax Reform
My job is to represent you, and that works best when you and I are interacting. That’s why I prioritize open communication. For example, folks in Ascension Parish had the opportunity to attend a Town Hall in Prairieville this week. We filmed a “postgame interview” so those of you who couldn’t make it can still be a part of the action. Watch the short video below, and 'like' my Facebook page to continue the conversation!
View the latest videos by "Liking" Congressman Garret Graves on Facebook.