The U.S. tax code has become too complex and adding new taxes only creates further obstacles for America's job creators. I support a systemic reform to our tax code that makes it fairer, flatter, and simpler - helping to remove barriers to job creation and putting more money back in the hands of the hard-working people of Staten Island and Brooklyn.
We have deficits because Washington spends too much, not because Americans are taxed too little. When Republicans provided tax relief in 2003, the amount of revenue collected by the government went up by more than $700 billion over five years and the deficit went down. Tax rates have been stable for the past ten years, while Washington has added over $5 trillion in new debt. That has helped produce four trillion-dollar deficits in a row. This tells Washington that it has to stop spending money we don’t have.
Those who contend that Washington should increase taxes on American families and job producers to pay for this spending binge must be willing to increase revenue “by more than 50 percent” just to keep debt at its current level, according to the Government Accountability Office.
Our tax code is far too complex, and stifles economic growth. I support a simpler, broader, flatter, and fairer tax code. America needs fundamental tax reform that scales back the deductions, loopholes and carve-outs that are distorting the corporate code. Right now, we have the highest corporate tax rate among our competitors. In order to be globally competitive with other industrialized nations, we must treat large and small businesses alike by cutting the corporate rate to 25 percent.
A flatter corporate tax rate would force corporations worth the same amount of money to pay the same amount of taxes, and revenue coming from these corporations would no longer fluctuate according to how each individual corporation manipulates the tax code to deduct enough to avoid their tax obligations. This strategy will undoubtedly increase revenue without raising taxes on individuals, and will be beneficial to hardworking American families at all income levels, and grow our nation’s economy.