Here are some considerations in response to concerns about the new tax bill.
“AMERICAN BUSINESSES CAN’T COMPETE”
• Tax reform will increase after-tax incomes for businesses, allowing them to invest more in their workers.
• Cutting the corporate income tax rate isn’t a new idea - even President Obama proposed cutting the CIT tax rate to spur economic growth. But President Trump made it a reality.
• Reducing the corporate income tax will relocate corporate profits to the United States, boosting workers’ incomes.
• Full business expensing eliminates arcane IRS complexities for businesses to recovery costs & invest.
“TAX REFORM WON’T HELP THE ECONOMY”
• Tax code compliance cost the economy $262.2 billion last year alone. Simplifying the tax code will reduce this figure.
• Currently, 94 percent of individual taxpayers & 85 percent of small business owners pay a professional tax preparer or online service to do their taxpayers for them.
• Reducing compliance costs through tax reform will save Americans $13 billion and 210 million hours of paperwork.
• Full business expensing helps maximize the growth potential of any tax reform plan by making investment easier and cheaper.
“THE TAX CUT AND JOBS ACT HELPS TOO FEW AMERICANS”
• Small business owners pay their taxes on their personal tax returns; decreasing individual rates provides relief for the job creators of America.
• Who actually takes the State and Local Tax deduction? Fewer people than you think.
• Why is tax reform focused on small business? Over 62% of Millennials have considered starting their own business; nearly 75% believe that startups & entrepreneurs are essential for innovation.
• More than one-third of the largest generation in the American workforce is both a worker and a business owner. Tax reform responds to the new reality of work in America.
• Who Pays Income Taxes? Top 1 percent of earners paid 39 percent of income taxes.
• SALT is a tax break for wealthier Americans, with very few benefits flowing towards Americans with lower incomes.
“TAX REFORM MAKES THE TAX CODE MORE COMPLEX”
• Tax reform means well over 90 percent of filers will no longer have to itemize their taxes, tremendously easing their tax compliance burden.
• Because of tax reform, 30 million people will not longer have to endure the frustration of itemizing.
• A modern economy needs a modern tax code: the Tax Cut and Jobs Act was the first major overhaul of the tax code in 30 years.
• Each taxpayers who is now able to take the standard deduction thanks to tax reform will save an average of 7 hours and $190 in costs.
“CONSERVATIVES AREN’T UNITED AROUND TAX REFORM”
• Republican Senators, Administration Officials and Conservative Leaders Agree: the time for tax reform is now
• Nearly 40 groups representing millions of taxpayers endorse the Tax Cuts and Jobs Act.
• 23 Conservative Groups Support the “Tax Cuts and Jobs Act”
• NTU, Conservative Coalition Endorses Tax Reform Framework Coalition to Congress: Include Three Critical Pro-Growth Provisions in Comprehensive Tax Reform
Information fro this article was provided by the National Taxpayers Union (NTU), the Voice of America’s Taxpayers. NTU mobilizes elected officials and the general public on behalf of tax relief and reform, lower and less wasteful spending, individual liberty, and free enterprise.