As an investor-driven organization representing more than 1,600 businesses, civic organizations, and entrepreneurs in Kentucky and Indiana, Greater Louisville Inc. has long sought tax reform at the federal level that is pro-growth and business-friendly.
A crucial vote in the Senate this week could bring the country one step closer to achieving that goal.
The last major overhaul of the federal tax code was in the 1980s. It has since grown in both density and complexity, putting a burden on businesses and citizens alike and creating a drag on our economy. Reform is long-overdue and will drive economic growth, help employers create more jobs, and give a much-needed boost to wages.
As GLI COO Sarah Davasher-Wisdom said in a letter this week to members of Greater Louisville’s congressional delegation, tax reform is needed “to keep up with today’s fast-paced and increasingly globalized economy.” This is a key reason why GLI supports “a federal tax code that is simple, competitive, fair, broad-based, and does not impose a disproportionate burden on any specific sector, industry, or activity.”
The process of reforming the federal tax code is already under way. Late last month, the Trump administration, members of the House Committee on Ways and Means, and the Senate Committee on Finance released a framework for federal tax reform. This framework will function as a guide for lawmakers as they mark up the actual legislation in committee meetings and hammer out the details of the reform package. Before that can happen, however, both chambers must pass budget resolutions with reconciliation instructions. This step will allow Congress to modernize and reform the federal tax code without the threat of a filibuster in the Senate—in other words, 51 votes instead of 60.
The House passed its resolution with reconciliation instructions on October 4, and now it’s up to the Senate, which is expected to take up a vote on a resolution this week.
The importance of that vote cannot be overstated.
In September GLI signed onto a letter with almost 250 chambers and associations nationwide, urging Congress to pass a budget resolution with reconciliation instructions. As stated in that letter, “failing to pass a budget resolution now may mean that tax reform never moves forward.”
The House has done its part to prevent that outcome. The Senate needs to follow suit.
GLI strongly urges Greater Louisville’s representatives in the Senate—Sens. McConnell, Paul, Donnelly, and Young—and all members of the upper chamber to pass a budget resolution with reconciliation instructions.
Pave the road to tax reform, and seize this once-in-a-generation opportunity.