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Thomas Ravenel on Tax Reform |
I support a complete overhaul of our current tax policy. Today, the government taxes Americans at every turn. We're taxed on our wages, when we make purchases with what's left of those wages, when we make gains on after-tax dollars, and even when we die.
We must also cut corporate taxes. The US has the highest corporate tax rate in the world at 40%. This places us at a severe disadvantage when competing globally. Additionally, instead of having a territorial tax system like most developed nations, the US has a world-wide tax system. This means our government taxes companies headquartered in the US if they earned income in other countries--even though those companies already paid taxes where the income was originally generated.
Tax cuts have always led to a growing economy with higher revenues than before the tax cut. In 1998 when our Republican House and Senate enacted a capital gains tax cut from 28% to 20%--a 29% cut: federal revenues from this source doubled. Capital gains and marginal rate tax cuts encourage people to work, save and invest.
Tax cuts allow small business owners to plow their money back into the business, which creates growth, expansion, and jobs. Unemployment goes down and wages go up. Increases in supply and productivity reduce the costs of goods and services, and improves their quality. Lower income citizens are then able to purchase higher quality goods at lower prices: with higher wages! Tax cuts increase the quality of life for those at the lowest rung of the economic ladder. This is compassionate conservatism!