Utah Sen. Orrin Hatch shares with National Review Online readers his guiding principles for tax reform.
Everyone agrees that the American tax system is broken and in need of reform. It stifles job creation, innovation, and competitiveness. It’s counterproductive, confusing, and a serious drag on the economy. Simply put: Tax reform is no longer an option but an obligation.
With the start of the new Congress, Washington has an opportunity to rebuild the tax code in a way that will spur economic growth, jump-start job creation, and once again restore prosperity to the American people.
To achieve this goal, however, the White House must get in the game and start to lead. This means putting smart policy ahead of poll-tested talking points and working with Congress in good faith. It also means accepting principles established by Congress to lay the foundation for true reform.
The most important principles were those followed by President Reagan nearly 30 years ago when Congress last acted to overhaul the tax code: economic growth, fairness, and simplicity.
Tax reform should promote growth in the economy and reduce economic distortions. It must eliminate the uncompetitive nature of the code and reduce disincentives to work, entrepreneurship, savings, and investment.
