Washington, DC – Today, Ways and Means Committee Chairman Dave Camp (R-MI) issued the following statement in response to an independent economic analysis commissioned by Business Roundtable (BRT) and conducted by Rice University Professors John Diamond and George Zodrow that shows the Tax Reform Act of 2014 would grow the economy and increase wages for American workers.
“American workers and job creators are facing a weak economy and stagnant wages because of our overly complex tax code. Tax reform that makes the code simpler and fairer by lowering tax rates will unleash America’s economic potential. The BRT study underscores this point, showing that tax reform will increase take-home pay for American workers, grow the economy and increase investment in the U.S. – putting our country on a path to stability and growth.”
The analysis shows that the Tax Reform Act of 2014 would:
- Boost after-tax wages for American workers by 2.3 percent two years after enactment, by 3.8 percent after 10 years, and by 6.1 percent over the long term;
- Increase U.S. annual GDP by 0.9 percent two years after enactment, by 2.2 percent after 10 years, and by 3.1 percent over the long term; and
- Expand U.S. annual domestic investment by 1.8 percent two years after enactment, by 6.5 percent after 10 years, and by 6.8 percent over the long term.
The study can be read here.