The U.S. Chamber of Commerce (U.S. Chamber) is calling on all candidates and elected officials to embrace the Growth and Opportunity Imperative, establishing a goal of at least 3% economic growth annually and prioritizing policies that will support faster sustained economic growth. Ensuring that America has a pro-growth tax code is central to this effort.
Taxes are a fact of life. While taxes are necessary to fund the important work that only the government can do, the fact remains that they act as a disincentive on whatever is taxed. Whether it’s work, investment, or consumption, when you tax something, you get less of it. And in a global economy, the domestic rate of taxation relative to those of other nations impacts the level of investment and production a country can attract. The type and level of taxes imposed by the government directly determine how much of a drag is imposed on the economy.
Tax policy should be designed to minimize the negative impact on economic growth. Pro-growth tax policy doesn’t just grow the overall U.S. economy; it raises wages for American workers and improves standards of living. Maintaining and improving pro-growth tax policy also ensures that the U.S. is globally competitive, retaining and attracting businesses, jobs, investment, and innovation here at home.
Next year, lawmakers will have the opportunity to advance pro-growth tax policy as they work to avoid the largest tax increase in American history, which will otherwise occur automatically at the end of 2025 when many important individual, business, and estate tax provisions are scheduled to expire.
As part of our Growth and Opportunity Imperative for America, the U.S. Chamber calls on candidates and elected officials to support pro-growth tax policies that will help achieve the goal of at least 3% economic growth annually, growing the economic pie for workers and helping to make the American Dream a reality for all. Most importantly, the new Congress and administration must act to:
- Preserve our now-competitive business tax rates (i.e., 21% corporate income tax rate, 20% pass-through deduction for qualified business income);
- Ensure a competitive business tax base (e.g., one that allows a deduction for research and development (R&D) expenses, full capital expensing for certain business assets, and a pro-growth interest deductibility limitation); and
- Maintain the competitiveness of the U.S. international tax system—for both U.S. companies operating abroad and foreign companies investing in the United States—while preserving our corporate tax base.