Ten Reasons to Reform the Tax Code: Reason #1
America needs strong economic growth and prosperity
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Growth needs a jumpstart. Last year the economy grew by only 1.6 percent, roughly half the average rate since World War II. Unless we change policy course, the Congressional Budget Office projects continued sluggish growth over the foreseeable future.
Tax reform can boost growth. The nonpartisan Tax Foundation analyzed the 2016 House Republican plan and estimated that over a decade it would:
- Raise GDP by 9.1 percent;
- Boost wages by 7.7 percent; and
- Lead to the equivalent of 1.7 million more full-time jobs.
Which policies produce growth? The pro-growth elements identified include:
- Lower and fewer individual tax rates;
- Lower tax rates for both corporations and small businesses;
- Lower capital gains taxes;
- Full expensing of business investments; and
- Repeal of the estate tax.
