3: Corporate Taxes & Business Regulations
Reform corporate taxes and business regulations.
Stakeholder(s):
- Corporations
- Businesses
- Democrats: Summary: Democrats must accept that a simpler tax code with a low corporate rate and a streamlined regulatory regime that
helps businesses grow is good for America. -- Democrats must accept that private sector job growth is the linchpin of American
economic success, and a simpler tax code with a low rate and a streamlined regulatory regime that helps businesses grow is
good for America. While startups and small businesses are the seedlings of future job growth, one-fourth of U.S. labor works
at a firm that employs more than 10,000 people. And the dream of nearly every small business and start-up is to be a contractor
for a large and successful firm. They must realize that while we want businesses to start and expand in America, there are
legitimate reasons for businesses to expand and open facilities overseas; overseas operations that create profits for U.S.
corporations have benefits to Americans as well. And though business must absolutely be regulated to prevent abuses, people
don't hate their employers and don't see themselves as victims of arbitrary and capricious work rules and bosses. Ideas that
Democrats should embrace include revenue-neutral corporate tax reform that lowers the rate and broadens the base; a sensible
transition toward a more territorial international tax system; and a top-to-bottom review of business regulations to end redundancies,
red tape, and economically harmful rules.
- Republicans: Summary: Republicans must accept that corporate tax reform will not add to the deficit and that regulatory agencies must be
fully staffed to prevent corporate abuse. -- Republicans must accept that capitalism and free markets are theories, not theologies.
Markets are, as economist John McMillan says, "not an end in itself but an imperfect means to raising living standards." Thus,
they must accept that there is an appropriate tax and regulatory role for government with regard to business. Unbridled business
success does not automatically spell American success. The fundamental purpose of business and financial institutions is to
provide value to customers from which profits flow. The role of government isn't just to help businesses succeed, but to help
them succeed here. New businesses and nascent industries often need government help to reach adulthood. Republicans should
embrace (like Democrats) corporate tax reform that does not add to the deficit and lowers the rate and broadens the base;
selected broad-based tax breaks that promote research, business formation, and American production; and full funding and balanced
regulations for regulatory watchdog agencies from the EPA to the SEC.
Objective(s):
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