Below is a statement from CRFB submitted to the Senate Finance Committee in response to Chairman Orrin Hatch's request for feedback on potential tax reform legislation.
The last major tax reform occurred more than 30 years ago, and the need to overhaul the tax system is as great as ever. The current tax code is a major impediment to economic growth because of its high marginal rates (our statutory corporate income tax rate is the highest in the developed world), significant complexity, and broken rules for international taxation. It also contains nearly $1.6 trillion in annual tax breaks that grow the federal budget deficit, pick winners and losers, and distort economic decision-making.
