The Committee for a Responsible Federal Budget has released a policy paper on corporate tax reform (Reforming the Corporate Tax Code) along with an interactive Corporate Tax Reform Calculator that allows users to design their own corporate tax reform plan.
The policy paper argues that with the highest statutory corporate tax rates in the
developed world, the United States is badly in need of corporate tax
reform. However, any reforms must be done in a fiscally responsible way. Specifically, the paper discusses the following:
- Why rate lowering tax reform is important to promote growth, reduce compliance costs, and boost international competitiveness.
- How
corporate tax reform can be done in a fiscally responsible manner by
broadening the tax base to reduce distortions and inequities in the
current tax code. - What
approach several prominent proposals — including from the
Simpson-Bowles Commission, President Obama, House Budget Committee
Chairman Dave Camp, and Senators Ron Wyden and Dan Coats — would take in
reforming the corporate tax code and business taxes more generally.
The Corporate Tax Reform Calculator gives users a hands-on opportunity to see how various reforms discussed
in the paper could play out. Users can see how their choices would
affect the corporate tax rate and can also set a revenue target that
could reduce or increase future deficits and debt — but it's important
that any choices be fiscally responsible.
