March 29, 2024

Tax reform

As a state legislator, increasing taxes on major industries is a subject that is frequently discussed. Most Americans are unaware that companies pay different effective tax rates based on their industry.

Although the effective tax rate for corporations in the United States is 39.1 percent, certain corporations actually pay a higher effective rate. Oil companies pay more in taxes than any other type of business even as they have increased the number of Americans they hire by 40 percent in the last five years.

The United States has specifically punished an industry that supports the employment of over 9.8 million Americans and contributes 8 percent of our nation’s GDP.

As the United States’ economy begins to recover, changes need to be made in our tax system to allow American companies to better compete with the rest of the world. Every taxpayer understands that the current tax code is burdensome on not only individuals, but also the businesses that provide millions with employment.

At more than 14,000 pages, the tax code and the federal regulations that accompany it have not been reformed since the Tax Reform Act of 1986. The American Tax Code and corporate tax rate encourages American companies to do business elsewhere, depriving Americans of well-paying jobs.

Some members of Congress and the Obama administration are calling for more taxes on U.S energy companies. More taxes on these industries could be detrimental. For example, Iowa energy companies alone would experience the loss of $54 million in wages and $280 million in economic production between 2011 and 2020.

I support America, along with the people and industries that work hard to keep the nation going. By passing comprehensive tax reform, Congress has the ability to support Iowans and all Americans through a thriving economy and expanded opportunities for employment and entrepreneurship. Congress should simplify the tax code and ensure its fairness by passing comprehensive reform.