Chief Deputy Whip Peter Roskam (IL-06) issued the following statement today after President Obama unveiled his corporate tax reform proposal.
"It's encouraging that the White House is finally joining the business tax reform conversation and to see bipartisan agreement on the need to lower the business tax rate, broaden the tax base, and eliminate loopholes that give certain sectors preferential treatment. Our tax code is overly complex, is the second highest business rate in the world, and is easily manipulated and antiquated, having last seen reforms in 1986. The status-quo is simply indefensible and continues to create barriers to American job creation.
"Regrettably though, the White House proposal misses the mark in key places, ensuring that America would continue to fall behind in the global fight for jobs and economic competitiveness. The President's proposal charts the ambitious course of taking America from the second highest business rate in the world to the fourth highest -- even though the President's own Fiscal Commission recommended a significantly stronger rate reduction. Additionally, while Ways & Means Republicans drafted an international tax reform proposal that would allow American companies to be significantly more competitive, the President's plan goes in the opposite direction by expanding a system of double taxation when American employers compete with foreign companies. This hamstrings American businesses in the global fight for jobs and runs contrary to the suggestions of both the President's Jobs Council and Fiscal Commission.
"Finally, the President's proposal is a half-measure, failing to address individual tax reform despite over half of all American businesses -- including countless small businesses and over 70% of U.S. manufacturers -- file under the individual tax system. The American economy can't afford lowering rates for some businesses, while raising taxes on the rest. That's partly why the President's determination to increase taxes on individual earners would be so devastating, and why it's critical that tax reform is done comprehensively."