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An Open Letter to the House of Representatives: Support H.R. 4995, the "Middle Class Jobs Protection Act"!
January 23, 2008
On behalf of the 362,000 members of the National Taxpayers Union, I write in support of H.R. 4995, the "Middle Class Jobs Protection Act." By reducing our inordinately high corporate tax rate and enhancing provisions important to small businesses, H.R. 4995 will help ease the burden of excess taxation on the components that make up the engine of American job creation.
H.R. 4995 would immediately cut the corporate tax rate from 35 percent to 25 percent, freeing up dollars for business investment and job expansion. It would also modify several important tax provisions related to small business. For example, it would provide for a return of 50 percent bonus depreciation, allow for additional expensing for large purchases, and establish longer "carryback" periods for losses or credits. As concerns over our economy's future grow, these changes would help to remove impediments to expansion.
The United States has one of the highest corporate income taxes of any developed country. When combined with state taxes, American corporations face an average burden of nearly 40 percent. By comparison, the median tax rate levied by developed countries is just 30 percent. Even countries like France, Sweden, and the Netherlands, which are hardly renowned for free-market environs, levy lower corporate tax rates than the U.S. Meanwhile, countries like Ireland, with its low 12.5 percent rate, have enjoyed healthy economic expansion in recent years.
Ultimately, it is the individual, not some faceless corporation, who bears the burden of any tax. Our high corporate tax rates and onerous business regulations lead to higher prices for consumers, fewer jobs, and lower economic growth. The time has come to reform the Tax Code in a manner that allows American businesses to compete with their counterparts on the world stage.
We wholeheartedly support H.R. 4995, the "Middle Class Jobs Protection Act," and look forward to working with you to make pro-growth tax reform a reality.