Experts call for reform of broken tax code, noting it would boost competitiveness and strengthen U.S. economy
WASHINGTON, D.C. – On Wednesday, six coalitions representing hundreds of American businesses hosted a bipartisan conversation on tax reform that was moderated by CNBC Senior Contributor Larry Kudlow and featured House Ways and Means Chairman Dave Camp and the Chairman of the President’s Council of Economic Advisers, Jason Furman.
The event, hosted by the Alliance for Competitive Taxation, Business Roundtable, the Information Technology Industry Council, the International Franchise Association, the LIFT American Coalition and the Semiconductor Industry Association, focused on the need for corporate tax reform to help grow our economy and level the playing field for American businesses in the global economy.
Camp, Furman, and Kudlow discussed the lessons learned from recent efforts to fix the tax code and the path forward for reform heading into the midterm elections and beyond.
At the event, Kudlow weighed in on the benefits of tax reform for the U.S. economy: “If you want economic growth and you want global competitiveness, fix the corporate tax code…It affects business investment which has been lousy. It affects shareholders. It affects consumers. And most of all as it turns out by a bunch of new research, corporate tax reform affects workers and wages.”
Addressing how American companies are at a competitive disadvantage, Chairman Camp said, “With the integrated supply chain between the United States and Canada, I don’t think we can sit by and say our neighbor has a rate so vastly different from ours. I agree that there is the effective rate and then the statutory rate, but the testimony we got in the committee was, the statutory rate is important and that we need to lower that statutory rate.”
Speaking about the President’s approach to tax reform, Furman said, “I think what the President would favor would be a hybrid approach. It would be one that recognizes the importance of the competitiveness of our companies, but also takes seriously the issue of base erosion. Tries to have a more neutral tax system, so that it’s not affecting your decisions and putting the thumb on the scale for investing overseas.”
View clips from the event:
Tax Reform: Lessons Learned and the Path Forward (Full Video)
Rep. Dave Camp explains how American companies are at a competitive disadvantage
Jason Furman on the current tax system and the right reform
Larry Kudlow on the need to fix the broken tax code