Thirty one years after the last tax reform, Republicans are determined to finally replace our broken tax code with a system that benefits all Americans. And we're determined to go big.
As the nonpartisan Tax Foundation argues in a recent study, “a temporary cut to the corporate income tax rate is substantially less effective than a permanent one.” That’s because short-term tax relief disincentivizes job creators from making long-term investments in their businesses. While temporary cuts may provide a brief uptick in economic growth, these effects would fade in a matter of years. In fact, a temporary rate cut could actually result in economic decline rather than growth.
Look and see for yourself:
Speaker Ryan stressed this very point in a major address to the National Association of Manufacturers (NAM) this week:
"There is one last piece to this puzzle, and it goes back to the idea that all of this is about looking down the road, and planning for the future. These reforms—these tax cuts—they need to be permanent.
“Every expert agrees that temporary reforms will only have a negligible impact on wages and economic growth. Businesses need to have confidence that we will not pull the rug out from under them. They need the certainty from permanent tax cuts to hire more workers, invest in their businesses, and plan for the future.”
So here’s the reality: If we truly want to raise wages, create jobs, spur economic growth, and build the confident America we know is possible, key elements of our tax plan must be permanent. Now is the time to get this done.
To learn more, visit speaker.gov or check out the links below:
Top 5 Moments from Speaker Ryan’s First Major Tax Speech
Speaker Ryan on Tax Reform: 'We are going to get this done in 2017'
Full Text: Speaker Ryan's First Major Speech on Tax Reform
Four Things Before Today's Tax Reform Speech
Tax Reform: More Jobs, Higher Wages, and Renewed Confidence