We have the worst tax code in the industrialized world for businesses. Our plan will level the playing field & make America more competitive pic.twitter.com/I3JklEru7j
— Paul Ryan (@SpeakerRyan) January 30, 2017
“The time is ripe for pro-growth tax reform in the United States,” wrote Douglas Holtz-Eakin of American Action Forum. “The House blueprint is a perfect start for the reform process.”
“A destination-based tax perfectly fits Trump’s aims," the Tax Foundation’s Alan Cole added.
These endorsements follow a new Treasury Department report highlighting the potential benefits of moving to destination-based tax system similar to those operated by most of our foreign competitors. As the study explains, “Our findings, coupled with the potential advantages that a cash flow tax provides in terms of simplicity, incentives for growth, potential progressivity, and fewer distortions on firm location choices, lead us to conclude that this style of reform is promising.”
Amid the building momentum, Speaker Ryan spoke with Politico about why the status quo is unsustainable: “We have the worst tax code in the industrialized world with respect to businesses and job growth. And this tax code basically incentivizes businesses to go overseas.”
As he explained, our plan will level the playing field for American businesses. Like 160 other countries and most of our competitors, we will tax products based on where they are produced rather than where they are consumed, and also lower the corporate tax rate from 35 percent to 20 percent. These reforms will eliminate the inherent disadvantages our businesses face under the current tax system.