Camp Statement on Release of Obama Administration’s Corporate Tax Proposal
Washington, DC – Today, Ways and Means Chairman Dave Camp (R-MI) made the following statement in reaction to the release of the Obama Administration’s corporate tax proposal.
“I appreciate that the Administration has finally weighed in with a framework for corporate tax reform. There is a clear and growing consensus that our outdated tax code is hindering the job creation this country needs to get Americans back to work, and it must be reformed so that the United States will be a more attractive place to invest and hire.
“I am pleased to see the Administration’s proposal adopts many of the same principles of reform that House Republicans have championed, such as lowering rates by broadening the tax base and closing loopholes. However, there are some policy differences that I look forward to discussing with the Administration and my House and Senate counterparts. Chief among those is the Administration’s apparent decision to expand a system that double taxes American employers when they try to compete with foreign corporations. Even the President’s own Bowles-Simpson Commission recommended abandoning this system, which the rest of the developed world has already done. I also want to more closely review how the Administration intends to bring home roughly $1 trillion in American profits that are currently trapped overseas. Those are real, private sector dollars that could go a long way to strengthening our economy and boosting the financial well being of American households.
“Notably, the Administration’s proposal fails to address the need for comprehensive reform of our tax code. More than half of all business income is taxed at the individual (rather than corporate) tax rates, and a corporate-only proposal does not address the needs of those job creators, the vast majority of which are small businesses. If we want to truly reinvigorate our economy and get Americans working again, we must address comprehensive tax reform. So, while this is a good step by the Administration, I will borrow from the President’s own words to Congress from just yesterday: Don’t stop here. Keep going.
“This Administration will find a ready and willing partner in House Republicans when it comes to comprehensive tax reform that cuts rates to spur economic growth and job creation. We put it in our budget last year, we have spent more than a year debating it in Committee and we have worked with the Senate to advance this cause.”