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Obama’s Business Tax Reform Plan Sends Mixed Messages, Nation’s Oldest Taxpayer Group Says
For Immediate Release
(Alexandria, VA) – With some helpful steps, more than a few harmful ones, and still others with an unclear impact, taxpayers are likely to be confused about the direction President Obama’s business tax reform plan hopes to take. That’s the assessment of the 362,000-member National Taxpayers Union (NTU) upon release of the President’s blueprint.
“President Obama calls his tax reform plan a ‘framework,’ but it appears to more closely resemble a ‘patchwork,’” said NTU Executive Vice President Pete Sepp. “Littered among worthy proposals to simplify the tax base and lower rates are some familiar, rewrapped political priorities from the Administration that would actually make the tax system more complex and burdensome.” Examples include:
Sepp also observed that other contradictions are likely to reveal themselves as further details of the President’s tax package are offered. For instance, the White House’s tax reform blueprint seems to lament the rise of debt financing over equity financing in corporate America, yet its budget blueprint calls for increases in the dividend tax rate that industrial sectors reliant on equity capital – like utilities – have denounced.
“Businesses and individuals alike are seeking clarity and consistency, not mixed messages, when it comes to tax reform,” Sepp concluded. “President Obama has offered encouraging words about overhauling our nation’s Byzantine tax system, even as he speaks of plans that would throw this progress into reverse. Some Members of Congress have proposed desirable approaches of their own – such as a flat tax or Fair Tax – even as others would enact punitive changes to make matters worse. Pundits may be writing off the issue in this election year, but beleaguered taxpayers want the heavy lifting on tax reform to begin in Washington now, not in 2013. Is anyone, on either end of Pennsylvania Avenue, listening?”
The 362,000-member NTU is a nonpartisan, nonprofit organization working for lower taxes, smaller government, and economic freedom at all levels. More information on NTU’s work is available at www.ntu.org.