Mark A. Weinberger makes the case for tax reform in clear terms in this well wirtten guest column for Forbes.com:
To be successful, business leaders must be willing to push beyond our own parochial interests. We know tax reform must be fiscally responsible. That means tax cuts must be accompanied with reductions in existing tax incentives. A pro-growth American tax system that attracts capital from all over the world and responds to the needs of U.S. workers will be much more beneficial than one riddled with targeted benefits and historical incentives.
It is encouraging that Congress and the Administration are making serious efforts to move legislation that will upgrade our outdated tax system. With its competitive business tax rates and territorial-like international tax rules, the House leadership’s Tax Reform Blueprint incorporates key pro-growth provisions. However, there are significant differences over issues like border adjustment taxes and the elimination of interest deductibility. These issues will have to be resolved.
The problems of America’s outdated business tax system are well known, starting with the burden of having the highest corporate tax rate among industrialized countries. The U.S. rate of 38.9 percent compares poorly to the average 24.2 percent rate of the member countries in the Organization for Economic Cooperation and Development (OECD).