The Reforming America’s Taxes Equitably (RATE) Coalition – whose affiliated companies represent over 30 million employees in all 50 states – released the following statement of support after the House Ways and Means Committee approved the Tax Cuts and Jobs Act:

“As American job creators employing over 30 million employees nationwide, we are proud of the House Ways and Means Committee’s action on the Tax Cuts and Jobs Act. This legislation offers the first meaningful and comprehensive tax reform in more than three decades – during which time our chart-topping corporate tax rate became the highest in the industrialized world and a full fifteen percentage points above the OECD average. The House Ways and Means Committee has passed legislation that both meets and sets the strong standard America needs for tax reform: a globally competitive corporate tax rate.

“The rate reduction is significant and finally puts America on a more level playing field with our global competitors. The rate reduction will boost investment, hiring, and consumer growth in communities across the country – all critical to strengthening Main Street. And most importantly, the rate reduction is immediate and permanent – providing the immediacy and certainty families and businesses need now and for the future.

“No doubt that today is a significant and historic step forward. We applaud Chairman Brady and his Committee for the work they have done to bring desperately needed tax reform one step closer to reality. We encourage the House of Representatives to follow the Committee’s lead and act with equal speed and diligence in writing the next chapter to America’s economic comeback by working together to pass this tax reform legislation.”

BACKGROUND:
  • ‘Reducing the statutory federal corporate tax rate from 35 to 20 percent would…increase average household income in the United States by, very conservatively, $4,000 annually.’ (The Council of Economic Advisers, 10/16/17)
  • ‘…the new Republican tax plan raises GDP by between 3 and 5 percent and real wages by between 4 and 7 percent. This translates into roughly $3,500 annually, on average, per working American household. The source of the increase in U.S. output and real wages is the…reduction in the U.S. marginal effective corporate tax rate…’ (Boston University’s Laurence J. Kotlikoff, 10/17/17)
  • ‘…a 20 percent corporate tax rate would lift after-tax incomes by an average of more than $1,800.’ (Tax Foundation, 10/25/17)
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