1986 Was A Great Year! Twenty-Seven Years Later, Time to ACT on Tax Reform
Twenty-seven years ago today, President Ronald Reagan signed the Tax Reform Act of 1986 into law. Over the course of the more than two decades since leaders from both sides of the aisle came together to pass tax reform that prioritized our nation’s economic future, the U.S. economy and the way Americans do business have changed significantly, as highlighted in a new video featuring ACT Economic Advisors Douglas Holtz-Eakin and Dr. Laura Tyson. Now is the time to ACT on tax reform by simplifying our nation’s outdated and confusing tax code to spur economic growth, create jobs and boost our competitiveness in the world.
The U.S. currently holds the unfortunate distinction of having the highest corporate tax rate in the world and our tax code is locking out trillions of dollars overseas that could benefit the U.S. economy, all at a time when wages are stagnant and not enough Americans can find good-paying jobs. ACT believes that the United States deserves a modern, globally competitive tax system that puts American companies on a level playing field, without adding a dime to the deficit. To reform our complex tax code, members of both parties should take the best ideas from the international tax systems across the globe and combine them with truly American reforms to create a modern hybrid international tax system that would protect our workers, protect our tax base, and help American businesses compete in the global marketplace. By establishing a 25% corporate tax rate, the average for other developed countries, and eliminating special tax breaks and preferences, we can make the U.S. a more attractive place for businesses to invest, grow and hire.
Today’s 27th anniversary of the 1986 Tax Reform Act should serve as an example to leaders from both parties in Washington of how Congress and the Administration can work together to achieve bipartisan, comprehensive tax reform.