Imagine the U.S. economy is a car driving down a highway. Our goal as a nation is to keep one foot planted on the gas pedal, avoid any dangers in our way, and head straight down the road to recovery and growth.
In this scenario, however, the U.S. tax code acts like a wheel out of alignment, slowly pulling the car further and further off track. It has become too complex and confusing, and the problem will not go away on its own. In fact, if left unaddressed, it will only get worse with time.
That is where the goal of fixing our broken tax code for families and job creators of all sizes comes in.
Any responsible car owner fixes a misaligned wheel. For the good of our economy, and for the sake of making the tax code simpler and fairer for families, Congress needs to come together to realign the tax code. It now contains nearly four million words. It would take the average person more than 18 uninterrupted days to read aloud. It takes the average taxpayer 13 hours to gather and compile all the receipts and forms just to comply with the code. And, the complexity in the code is eroding confidence in our economy and creating uncertainty for America’s families and businesses.
It’s time to fix the tax code.
Combined, the Ways and Means Committee and Senate Finance Committee have held more than 50 hearings since 2011 examining the nuts and bolts of the tax code. Both committees asked questions during those hearings about fairness, the growing burden of compliance on families, the way the tax code affects how small businesses operate and how the code hampers our competitiveness in the global economy.
Both Committees heard a loud and clear message - America’s tax code is broken, unpredictable and out of date.
The last major update of the tax code happened in 1986 when the world looked entirely different than it does today. During the past 28 years, our economy has nearly doubled in size. More and more businesses are reaching across international borders to find new customers. The internet has transformed the way we conduct commerce and live our everyday lives.
Simply put, the world has changed. But the tax code has not kept pace with many of those changes. Simply put, the tax code does not fit today’s economy. It is like a wheel out of alignment, slowly pulling us off track.
Fixing our broken tax code can help America get back on track.