|
| A/O Global Intelligence Weekly: Tax Reform Is On The Horizon! |
|
The U.S. House of Representatives succeeded in passing the first major tax reform since Reagan, and the U.S. Senate is drafting its own version right now.
Such news couldn't come at a better time. We at American Opportunity need to say right now in the strongest terms that this tax reform must pass for the future of our country.
Since 2010, we at American Opportunity/Free Congress Foundation (AO) have proposed and have been advocating for a tax reform that will create economic growth. Working with our economist, we formulated the Growth Code, which can be reviewed at length on our website, and we here at AO have been calling for a bold program of pro-growth tax reform for eight years.
For the last decade, America has experienced growth in the 0-2% range -- slow at best and anemic at worse. The AO benchmark is the historical average growth rate of the United States: 3.2%. Any growth program must promise to exceed the historical growth rate. The Growth Code would do that. We believe the proposed tax reform will move in that direction.
In Congress, the tax reform package is intended to grow the American economy. We applaud this effort and this bill. There are many variations, including in the Congress, but a tax reform must pass! We believe it will pass. The Republicans in the Senate simply cannot obstruct this central program for America, even though there will be much debate and negotiation.
The cost of slow growth has been devastating. Young college grads cannot find suitable employment and careers. African-Americans have suffered the most from this policy of non-employment made up for by government benefits. Wages are stagnant even for those who can find a decent job.
This current dynamic of envy and want must change, and this bill is the first start.
In addition to domestic improvement, the tax reform bill promises revenue from growth that can pay for national security. We are in a world-wide conflict right now. The strength of our economy is directly tied to our national security, military capability, and economic power. We presently have a $19 trillion gross domestic product. Our national goal must be to increase our GDP to $25 Trillion as soon as possible.
Those in the left wing of our country are fighting this tax reform effort. They propose to stop the reform by labeling it "tax cuts for the rich". They want no change and no growth. Such resistance is placing this country, and our citizens in danger.
The efforts underway do not mean that American Opportunity's mission is now over -- not by a long shot. The current package of tax reform must be designed to create the maximum possible economic growth.
So far this Congress has only gone half way. Allowing deduction for business investment so far applies to equipment bought for business, but not the structures to house the business. Also, the deductions are proposed for only five years. We have to come back later and make the deductions for business investment more universal, and permanent.
Likewise, a tax on imports was first proposed, to level the playing field for domestic manufacturers competing with American companies that go outside our country to build plants, and then bring on the resulting products duty free. Such a duty would also have produce revenue that could have been applied to further tax reductions for businesses and citizens. Clearly AO still has much to do.
We believe the relentless injection into the national discussion of the need for tax reform for economic growth is helpful to create an environment for tax reform. We are not legislators; we are participating in public education for this need for our country.
American Opportunity has played no small part in setting the agenda for tax reform, a role we can all be justly proud of playing a small part in maintaining a narrative of pro-business economic growth. Yet the fight to improve upon these gains and defend what we are on the cusp of achieving will require the effort of those who care about passing on an economic future worthy to be called a future -- both for our children and our grandchildren.
As long as we continue to be supported by our generous donors and members, American Opportunity will continue to play the vital role we have always performed -- stirring the conscience of Washington while addressing the sinews that make American success possible.
More after the jump. . . |
|
|
|
