Comprehensive tax reform is critical to restore economic growth and international competitiveness. In a wide-ranging paper, AFP lays out reforms that Congress should implement to increase simplicity and neutrality, two essential elements of an ideal code.
AFP recommends the elimination of numerous tax provisions and counsels for the expansion of others. Our motivations are to create a simple, flat and neutral tax code with the fewest distortive, secondary effects on the economy. Areas that are particularly ripe for reform include: the treatment of savings and investment on both the personal and corporate side, the treatment of international corporate earnings, energy tax provisions that seek to pick winners and losers and numerous itemized deductions.
Ending these deductions, credits, and exclusions without simultaneously lowering rates would be a tax increase, and AFP would likely oppose such a proposal. However, comprehensive reform offers an opportunity for Congress to clean up the code and reinvigorate growth all in one fell swoop, without increasing the net burden on taxpayers.