Dear Chairman Brady and Members of the Ways and Means Committee:
On behalf of more than 3.2 million Americans for Prosperity activists across the country, I write today to express support for the committee as it moves forward in its effort to deliver meaningful, pro-growth tax reform this year. The Tax Cuts and Jobs Act of 2017 (H.R. 1) provides a solid foundation on which to build a bold tax reform package that seeks to unrig our economy.
We are pleased to see many positive provisions included in this legislation. On the individual side, we are pleased to see a dramatic simplification in the filing system that will allow most individuals to file their taxes on a form not much larger than a postcard. Reducing the number of brackets, doubling the standard deduction and lowering rates will bring much needed relief to middle class Americans. And the reduction or even better outright elimination of many of the distortive credits, deductions and loopholes that litter our code are certainly steps in the right direction.
Immediately and permanently reducing the corporate rate from 35 percent to 20 percent will be crucial to reigniting economic growth in this country after years of stagnation. Similarly, lowering the tax rate on pass-through businesses to 25 percent will provide an additional economic boost and provide relief to many small businesses that are truly the engines of growth in this country. Eliminating or reducing many of the distortive credits, deductions and loopholes that have plagued our code for decades, is certainly a step in the right direction.
While we applaud these provisions, we see more work left to do in other areas. We’re concerned to see a new “excise tax” on U.S. and multinational companies that purchase goods from related foreign corporations. Because this new 20 percent tax would apply to cost of goods sold, this could have a serious impact on global supply chains and ultimately increase prices for consumers—akin to the unpopular Border Adjustment Tax debated earlier this year. This provision, as written, violates the promise that the Big Six delivered earlier this year that they would not include such a consumer tax in their tax package.
We look forward to working with Representatives, Senators, and the Trump Administration in delivering a pro-growth tax reform package this year: one that is simple, efficient, predictable, fair and, importantly, does not place any new additional burdens on taxpayers. Thank you for your work on this important issue.
Chief Government Affairs Officer
Americans for Prosperity
Americans for Prosperity (AFP) exists to recruit, educate, and mobilize citizens in support of the policies and goals of a free society at the local, state, and federal level, helping every American live their dream – especially the least fortunate. AFP has more than 3.2 million activists across the nation, a local infrastructure that includes 36 state chapters, and has received financial support from more than 100,000 Americans in all 50 states. For more information, visit www.AmericansForProsperity.org.