Economists Agree, Wyden-Gregg Is A Positive Step For U.S.
With less than 9 months remaining until the tax relief provisions of 2001 and 2003 expire, a bipartisan proposal to reform the tax code has turned the heads of economists and academics across the country. Introduced by U.S. Senators Ron Wyden (D-Ore.) and Judd Gregg (R-NH), the "Bipartisan Tax Fairness and Simplification Act of 2010" takes a comprehensive approach to reforming the tangled web of exemptions, deductions, credits and other preferences that currently clutter the U.S. tax code in order to create a simpler and fairer system that American workers and businesses can more easily navigate. In addition to lowering taxes for middle class families, Wyden-Gregg takes steps to create a level playing field for businesses of all sizes by reducing the corporate tax rate, which is currently the second highest in the industrialized world, to a flat rate of 24%.
More than a hundred leading economists--representing a range of respected institutions, including Harvard University, University of Chicago, Columbia University, and Brown University-- responded to a recent survey, and over 95% of respondents said that Wyden-Gregg bill is a "step in the right direction.' When asked to assign a letter grade to Wyden-Gregg, nearly 90% of economists responding to the survey assigned the plan an "A' or "B'.
Senator Wyden said, "This is additional proof that putting partisanship aside and focusing on policies that work really does bring people together. And our approach makes sense. By eliminating tax breaks and loopholes that disproportionately reward special interest groups and incentivize companies to export U.S. jobs, it becomes possible to give real tax relief to working families and businesses that create jobs here at home."
Senator Gregg stated, "I am pleased to see such widespread support among leading economists for our bipartisan tax reform package. We all agree that our income tax system is overly complicated, burdensome and unfair to small businesses that are the economic engines of our nation. By putting in place these common-sense tax reforms, we will encourage businesses to expand, create jobs, and make our nation more competitive. Furthermore, the flat 24% corporate tax will encourage capital investment and long-term economic strength in our country. "
Overall the "Bipartisan Tax Fairness and Simplification Act" follows the successful model of the bipartisan Tax Reform Act of 1986 which funded tax relief by eliminating a number of special interest tax breaks. Wyden-Gregg will provide tax relief for most families making up to $200,000 a year with a similar approach.