Comprehensive tax reform is a win for the economy, our small businesses, and our families. It may not be as exciting as watching team USA win a gold medal, but for a CPA who specialized in tax, comprehensive tax reform IS the Olympics -- and we want to win gold for the American taxpayer.
This is why on Thursday the House of Representatives passed the Pathway to Job Creation Through a Simpler, Fairer Tax Code Act. I voted for this bill to keep tax rates on small businesses low, reduce complexity in the tax code, stimulate economic growth, and provide investors and entrepreneurs with long-term certainty. Specifically, the bill will create an expedited process to implement tax reform 2013, eliminate the Alternative Minimum Tax, and end special-interest tax breaks.
Our tax code is a disaster. At around 15,000 pages, it is too long, too complicated, and chock full of loopholes that favor some taxpayers at the expense of others. U.S. taxpayers and businesses spend 7.6 billion hours simply complying with the code. Tax compliance as an industry, is one of the country's largest, requiring 3.8 million workers.
We need a code that is more fair, equitable, and efficient. We need to broaden the base, lower rates, and ignore special interests that are fighting to block reform that will save us billions of dollars and create a million jobs.
Our friends across the aisle believe simply increasing the top rate from 35 percent to 39.6 percent will restore fairness and raise revenue, but this approach actually targets many small businesses who are the primary engine for job creation. Further complicating the code with more exclusions for certain folks will not make things more fair. It will simply continue to allow those that have the means and tools to reduce their tax burden to do so -- all while those billions of hours the rest of us spend on our tax returns will just grow.
A simpler code is the only way to restore fairness. And what we have learned from tax reforms instituted in 1986 is that broadening the base and lowering rates will also raise revenue through economic growth. This bill not only supports comprehensive tax reform, but it lays out a plan to ensure it actually happens next year.