Now Is the Time for Tax Reform, RATE Coalition Members Say

As Congressional leaders begin to craft the agenda for the 114^th Congress, there is widespread bipartisan agreement that steps must be taken to put our economy on firmer footing. Critical to achieving that much-needed and long-missing economic security is tax reform that opens up new opportunities for more hiring and greater investment.

As job creators representing over 30 million employees in all 50 states from across a diverse set of industries, the RATE Coalition agrees that now is the time for tax reform. This is an issue that has historically enjoyed wide bipartisan support -- and thankfully the call for action has only grown. Throughout the election season, candidates from both parties highlighted the importance of making the tax code fairer, simpler and more competitive for large and small businesses in the United States. Leaders like yourselves, as well as the vast majority of the public, acknowledge the importance of tax reform and understand how possible it is to achieve. Ninety-five percent of voters in a pre-election poll said Republicans and Democrats need to work together to update the tax code.

Clearly, the strong public support for making the code simpler, fairer and more competitive is rooted in a belief that today's code is broken. It is holding our country back and as a result investment is waning, uncertainty is high and paychecks are stagnant.

It has been nearly 30 years since the tax code was last reformed, and in those three decades it has only become more complicated, more riddled with exemptions and more unfair. While our international competitors have lowered their rates and lured companies to their shores, the United States continues to fall further and further behind as it struggles to compete with the highest statutory corporate income tax rate in the world at 39.1 percent.

It isn't just the rate, however, it's also the tax code itself. Business owners large and small have to navigate a maze of complicated rules to comply. Already complex, the tax code has, incredibly, gotten longer and more complex every year. In our capacity as tax executives for some of the largest U.S. companies and employers, we're faced with these byzantine procedures every day. We see first-hand that our outdated, over complicated tax code and high rate limit the ability of our companies to invest, hire and grow business in the United States. This isn't just harder for our bottom lines; it weakens the United States' standing in the global marketplace, and stifles economic growth here at home. Simply put, the high statutory tax rate discourages foreign investment in the United States and reduces the potential for economic and job growth.

As members of RATE, we believe that the United States would benefit from a tax system that puts everyone on a level playing field where they play by the same set of rules. Our companies understand that nearly all businesses will need to forgo certain provisions that are in place today. We recognize that base-broadeners, such as the elimination or modification of tax expenditures, may be required in order to achieve a corporate tax rate that is globally competitive, supports U.S. economic growth and is equitable to all U.S. businesses. The RATE Coalition understands that those tradeoffs are a necessary topic of conversation and is ready to engage in that much-needed debate so we can achieve what will ultimately ensure greater growth -- a lower rate that provides more competition, investment and hiring to strengthen and spur our economy.

Unlike many of the heated topics being debated in Washington today, in tax reform, we have an issue that can break through the partisan gridlock. It represents one of those rare issues where you have leaders from both ends of Pennsylvania Avenue in agreement. The only thing left to do is make it happen.

When the 114^th Congress convenes, you will be inheriting a moment that is ripe for thoughtful, bipartisan action. We encourage you to build on the progress that has already been made and make tax reform a reality.

Thank you for your continued service to this country and for your attention to this important matter.