3 Ways the US Tax Code Is Killing Our Economy’s Potential

President Donald Trump, Speaker Paul Ryan, and Senate Majority Leader Mitch McConnell told the American people that if they gave Republicans the chance to govern, pro-growth tax reform would be their major legislative priority in 2017.

Now that the voters have given Republicans control of the White House, House, and Senate, there is a real opportunity to achieve comprehensive, pro-growth tax reform.

Today, America’s tax code is outdated, anti-growth, over-complicated, and full of corporate favoritism. We have an antiquated, Frankenstein’s monster of a tax code that doesn’t do any favors to the American taxpayer. Its problems can be boiled down into the following three categories.

Problem 1: Our Tax Code Is Not Pro-Growth

Our current tax code suppresses business creation, expansion, and reinvestment thanks to high tax rates. The U.S. corporate tax rate is the highest in the industrialized world, which makes it difficult for American businesses to compete with their foreign counterparts.

America’s tax code puts companies at a disadvantage by failing to allow full expensing, or the ability to allow all businesses to deduct the full cost of new capital investments such as a building, machinery, technology, etc., necessary for business creation and growth.

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