This week represents a critical juncture on the path to reforming the federal tax code for the first time since 1986. The House passed a bill earlier this month that proposes substantial reforms. All eyes are now on the Senate, which has its own version of a comprehensive tax reform bill and is expected to vote on it this week.
Advocating for business-friendly, pro-growth tax structures at all levels of government is a central tenet of GLI’s mission. In our 2018 state legislative agenda, for example, we advocate for reforms in Kentucky that simplify the tax code, broaden the tax base, and transition the Commonwealth to a consumption-based tax system. But to truly create a pro-business tax climate and accelerate economic growth, reform must happen at both the state and federal levels.
In that spirit, GLI has joined a coalition of other pro-business groups from around the state in encouraging our elected officials in the U.S. Senate to move forward with the chamber’s pending legislation, which would allow Congress to enter into the final legislative phases of federal tax reform.
In letters to Majority Leader Mitch McConnell and Senator Rand Paul, co-signed by the Kentucky Chamber and chambers from Lexington, Northern Kentucky, Hardin County, Henderson County, and Hazard County, GLI urged them “to adopt sensible tax reform that improves the competitiveness of the United States while enabling Kentucky businesses to be more profitable and invest in new opportunities.” This includes lowering the statutory corporate tax rate—currently the highest in the industrialized world—evaluating the effectiveness and value of all currently-existing tax expenditures, and reducing the tax burden placed on small businesses and pass-through entities.
Washington has a once-in-a-generation opportunity to make this all happen. Now is the time to enact federal tax policy that will drive economic growth, help employers create more jobs, and give a much-needed boost to wages—not only in Greater Louisville and Kentucky but throughout the country as a whole.