Saturday, January 21, 2012
Following up on last week's post on the American Enterprise Institute's program on Taxing Innovation in a Global Economy (video here): AEI has released A Pro-Growth, Progressive, and Practical Proposal to Cut Business Tax Rates:
The US tax code has eroded over time with the explosion of endless special provisions, such as distortionary deductions and ineffective credits. Now is the time to take a good look at reforming it. This Outlook outlines six simple—and bipartisan—changes to the tax code that can help the country move toward a tax code aimed towards economic growth and away from complex regulations and political favoritism. While containing the types of compromises necessary for political achievement, this plan provides a pro-growth solution by broadening the tax base and reducing the tax rate on business investment.