Tax Reform

American businesses are the backbone of our economy. They create jobs, offer goods and services that raise the standard of living, and provide economic opportunity for millions of Americans. Unfortunately, due to existing tax policy, business owners find it more and more challenging to operate and grow their companies.

The current tax code is deeply complex, at over 74,000 pages long, adding high compliance cost to business operations. Americans spend 6 billion hours complying with the tax code every year while estimates show tax code compliance costs our economy $125 billion to $400 billion annually. The current tax code imposes high rates on corporate businesses and many small businesses – 83 percent of which file taxes through the individual income tax code.

The current tax code is also both anti-growth and discriminatory. It is anti-growth due to the double taxation on income saved or invested through the estate, gift, and capital gains tax. It is discriminatory because of the various tax credits, deductions, and exemptions for some individuals and businesses over others, particularly when it comes to the tax treatment of health insurance.

Reforming the tax code is essential to empowering businesses to flourish and grow our economy. Congress must take action to pass comprehensive tax reform that simplifies the tax code, establishes flat rates across the board for individuals and businesses, repeals double taxation and discriminatory provisions, and moves us from a worldwide to a territorial corporate tax system.

Briefs

The Need for Pro-Growth Tax Reform

Background: President Donald Trump, Speaker Paul Ryan and Senate Majority Leader Mitch McConnell made it clear before the November 2016 election that pro-growth tax reform would…

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Comprehensive Tax Reform

Background: American businesses are the backbone of our economy. They create jobs, provide goods and services that raise the standard of living, and offer economic…

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Blog posts

Full Expensing and Meaningful Tax Reform

By Sutton Truluck, Research Assistant, Heritage Action for America. The Trump presidential campaign and Congressional Republicans made numerous promises to Americans throughout the 2016 election…

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VIDEO: Adam Michel on CNN to Discuss Tax Reform

Adam Michel, Policy Analyst, Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation, Appears on CNN's At This Hour with Kate Bolduan…

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Cruz Highlights 7 Ideas for Tax Reform

By Rachel del Guidice, reporter for The Daily Signal. Sen. Ted Cruz thinks tax reform can help the average American. Tax reform is all about…

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Trump’s September Budget Deal Could Move Tax Reform

By Romina Boccia, Deputy Director, Thomas A. Roe Institute at The Heritage Foundation. This week’s budget deal is fiscally irresponsible. But it just may have cleared the…

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Trump Is Right. ‘Our Tax Code Is a Giant, Self-Inflicted Economic Wound.’

By Adam Michel, Policy Analyst, Thomas A. Roe Institute for Economic Policy Studies In his second speech in two weeks on the need for tax…

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3 Ways the US Tax Code Is Killing Our Economy’s Potential

By Sondra Clark, Managing Director of Communications and Grassroots at Heritage Action for America. President Donald Trump, Speaker Paul Ryan, and Senate Majority Leader Mitch…

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Trump Says Tax Reform Could Create ‘Millions and Millions of New Jobs’

By Fred Lucas, White House correspondent for The Daily Signal. President Donald Trump hit his campaign themes of bringing back American jobs and raising wages…

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VIDEO: Michael Needham discusses tax reform

Heritage Action for America’s CEO Michael Needham discusses tax reform on Bloomberg TV.…

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OPINION: The key to passing tax reform: Keep it simple, stupid

By Stephen Moore, Distinguished Visiting Fellow for Project for Economic Growth at The Heritage Foundation. One of the most enduring lessons from the ObamaCare fiasco is…

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VIDEO: Dr. Feulner discusses tax reform and Trump, Congress.

The Heritage Foundation’s President Dr. Ed Feulner discusses tax reform and the relationship between President Trump and Congress on Fox Business Network.…

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Taxes, Regulations Hurt Economy

By David W. Kreutzer, Ph.D, Senior Research Fellow, Labor Markets and Trade at The Heritage Foundation. If bigger government, higher taxes, larger subsidies, more regulations…

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How the Senate’s baseline budget could make or break tax reform

By Romina Boccia, fiscal and economic expert at The Heritage Foundation, and Adam Michel, policy analyst at The Heritage Foundation. Tax reform is one of the…

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This Key Reform Must Be Central to Any New Tax Plan

By Salim Furth, Research Fellow in Macroeconomics at The Heritage Foundation, and Adam Michael, Policy Analyst in the Thomas A. Roe Institute at The Heritage Foundation.…

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Tax Reform for Investment and Jobs

By Adam Michael, Policy Analyst for the Thomas A. Roe Institute at The Heritage Foundation. Fixing a quirk in the U.S. tax code would let businesses…

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A Conservative View of Trump vs. Amazon

By Dan Holler, Vice President of Heritage Action For America Amazon’s successful business model is “destroying department stores and retailing all over the country,” President Donald…

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These Obama Regulations Make a Strong Case for Tax Reform

By Adam Michel, Heritage Foundation Policy Analyst & Jacob Lubenow, member of the Young Leaders Program at The Heritage Foundation. Congress is pivoting to tax reform,…

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Michael Needham discusses next steps for tax reform

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GOP ‘Tax Principles’ Signal Strong, Pro-Growth Plan

Washington — Today, a group dubbed the “Big Six” released a broad set of principles to provide directions to a long-awaited overhaul of America’s cumbersome and…

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Republicans Just Made Tax Reform More Difficult

By Adam Michel, Heritage Foundation Policy Analyst This week, the House Budget Committee released its long-awaited budget. It makes progress in some areas, and falls short in others.…

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Business Owner Legislative Strategy Call 07/20/17

Yesterday conservatives working in the business owner community all came together for our monthly Legislative Strategy Call. During the call, we heard from Heritage Action’s Wesley Coopersmith, Policy…

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Repealing This Obamacare Tax Would Signal That Tax Reform Is Alive

By Adam Michel, Heritage Foundation Policy Analyst The Senate is seriously considering keeping Obamacare’s 3.8 percent net investment income tax as part of it’s most recent repeal…

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A Pathway for Pro-Growth, Fiscally Responsible Tax Reform

By Adam Michel, Heritage Foundation Policy Analyst and Chase Flowers, member of The Heritage Foundation's Young Leaders Program. The tax code is in dire need of…

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Congress’ Inaction on Trump’s Agenda Costs America Nearly 1,000 Jobs Per Day

By Edwin J. Feulner, President of The Heritage Foundation “Drain the swamp!” It was the battle cry of Donald Trump’s presidential campaign. Many Republican members of Congress echoed that…

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GOP Wants to Pay for Tax Cuts with a Tax Increase

Last week House Speaker Paul Ryan assured the country that tax reform is still coming despite uncertainty surrounding the repeal and replace of Obamacare. Speaker…

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If Congress Is Serious About Tax Reform, It Should Stop Passing Bills Like This

By Adam Michel, Heritage Foundation Policy Analyst House Speaker Paul Ryan doubled down earlier this month on getting tax reform done by the end of…

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Phased-In Border Adjustment Tax Plan Is A Non-Starter

Washington — According to reports, House Ways and Means Committee Chairman Kevin Brady (R-TX) “floated a five-year phase-in to his controversial ‘border adjustment’ idea on…

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Video: Principles for Tax Reform: A Conversation with the House Freedom Caucus

Watch as members of the influential House Freedom Caucus lay out their principles for tax reform and the path forward in the 115th Congress. https://www.facebook.com/heritagefoundation/videos/10155382490189481/…

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This Key Reform Must Be Central to Any New Tax Plan

By Salim Furth, Heritage Foundation Research Fellow in Macroeconomics & Adam Michel, Heritage Foundation Policy Analyst As Congress and the president move toward consensus on…

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House Conservatives Ready to ‘Go Big’ on Tax Reform That Includes Welfare Reform

By Fred Lucas, White House Correspondent for The Daily Signal The House Freedom Caucus wants to “go big” on a tax reform package to include welfare…

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New Data Show That Ignorance of US Tax Policy Fuels Leftward Sentiments

By Elizabeth Fender, Market Research Associate at The Heritage Foundation. With federal Tax Day now here, taxes have been on many people’s minds and have…

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Congress Should Leave the Border Adjustment Tax Behind

By Adam Michel, Policy Analyst at The Heritage Foundation BAT, RIP? That’s what some people are claiming. And with good reason. The border adjustment tax…

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Business Owner Legislative Strategy Call 05/17/17

Yesterday conservatives working in the business owner community all came together for our monthly Legislative Strategy Call. During the call, we heard from Wesley Coopersmith – Policy Manager…

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President Trump’s Simplifications to Tax Code Are Key to Economic Growth

Last week President Trump unveiled his plan for the “biggest individual and business tax cut in American history.” However, it still didn’t take long for…

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Put America First by Fixing the Tax System

By Adam Michel, Policy Analyst at The Heritage Foundation Tell someone that the U.S. tax system needs to be fixed, and you’re not likely to…

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The Most Taxing Time of the Year

By Edwin J. Feulner, Former President of The Heritage Foundation, Chairman of the Asian Studies Center How does tax season make you feel? Angry? Tired?…

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How to Talk Taxes in Simple Terms

By Beverly Hallberg, President of District Media Group If you’re in need of a great dinner party topic, try taxes. We pay taxes, we complain…

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Here Are 6 Reasons to Lower the Corporate Tax Rate Immediately

By Timothy Doescher, Research Associate at The Heritage Foundation & Karl Keyzer-Andre, member of the Young Leaders Program at The Heritage Foundation. At close to 40 percent…

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Business Owner Legislative Strategy Call 03/16/17

Yesterday, conservatives working in the business community all came together for a our Monthly Legislative Strategy Call to discuss tax reform and Obamacare repeal. During…

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Don’t Look To The Export-Import Bank To Create Jobs

Last week President Trump took a detour on his way to a weekend rally in Florida stopping at a Boeing plant in South Carolina. Trump…

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Business Owner Legislative Strategy Call 02/15/17

Yesterday, conservatives working in the business community all came together for a our Monthly Legislative Strategy Call. During the call we discussed the current Congressional…

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Congress Should Repeal the Death Tax

This Wednesday, Rep. Mac Thornberry (R-TX) introduced legislation to fully repeal the federal estate and gift tax named the Death Tax Repeal Act (H.R. 198).…

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Supreme Court Refuses to Hear Challenge to Colorado’s Internet Sales Tax

Last Monday, the U.S. Supreme Court declined to hear a challenge to a Colorado state law forcing out-of-state retailers to report their customer’s purchases to…

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Tax Reform a “First Priority” Under the Trump Administration

President-elect Donald Trump has been making a number of administrative appointments over the last few weeks. On Wednesday, President-elect Trump nominated a former Goldman Sachs…

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Heritage Action Opposes Special Tax Breaks for Renewable Energy

Members of Congress will return to Washington, D.C. after the Presidential election on November 14th for a lame-duck session of Congress. Historically speaking, politicians use…

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Internet Sales Tax Legislation Is ‘Taxation Without Representation,’ Conservatives Say

By Leah Jessen, News Reporter for The Daily Signal Conservatives are wary of internet sales tax legislation in the works that would create an “unlevel…

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Obama’s New Death Tax Threatens Family Farms and Businesses

Special Guest Blog: Congressman Warren Davidson (R-OH) We all knew President Barack Obama’s lame-duck presidency would be bad, but for the millions of Americans who…

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The State of Tax Reform in 2016

By Curtis Dubay, Heritage Foundation Economic & Tax Expert Tax reform remains a central issue in Washington because of its overwhelming necessity. Tax reform is…

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Video: What Pro-Growth Tax Reform and Conservative Health Care Reform Should Look Like

https://www.youtube.com/watch?v=b9ev9fB2UU0 Watch Heritage Foundation scholars Paul Winfree and Ed Haislmaier, along with CEO of Juniper Research Group Chris Jacobs, discuss the impact that an outdated tax…

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Goodlatte’s Internet Sales Tax Plan Is Better, but Still Falls Short

By Heritage Foundation scholars Curtis Dubay and James Gattuso House Judiciary Chairman Bob Goodlatte, R-Va., has reignited the debate over state taxes on out-of-state (mostly…

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Clinton’s Small Business Plan is More Government

Democrat presidential nominee Hillary Clinton will roll out her plan to make American small businesses great again, or in her words: “to support small businesses…

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Trump Calls for Lower and Equal Tax Treatment of U.S. Businesses

Earlier this week, Republican presidential candidate Donald Trump unveiled his revised tax reform proposal in a speech at the Detroit Economic Club. In his speech,…

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Government Regulations Burning Employer’s at Both Ends

Guest Blog: Jordan Alvarez The term ‘business owner’ is thrown around quite a bit – so much so that we forget it’s true meaning.  Business…

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Business Owners “Did Build That”

Guest Blog: Mark Adamson As an entrepreneur and small business owner, I know what it takes to run a successful company. I own and operate…

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Americans will Spend Almost 9 Billion Hours Complying with the Tax Code

According to the latest research conducted by the Tax Foundation, Americans will spend over 8.9 billion hours complying with IRS tax filing requirements in 2016,…

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New Survey Shows what Issues Really Matter to Small Business Owners

The National Small Business Association (NSBA) recently released the results from their 2016 Politics of Small Business Survey just four months before the Presidential general…

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Heritage Action Praises Tax Reform Task Force

Washington — Today, the House Republican’s tax reform task force released its policy recommendations. Last December, Speaker Paul D. Ryan promised to “show what we would…

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Blueprint for Pro-Growth Tax Reform Released

Last Friday, House Republicans released a blueprint for comprehensive tax reform as part of the GOP’s larger campaign reform agenda named “A Better Way.” While…

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Heritage Action Praises Tax Reform Task Force

Washington — Today, the House Republican’s tax reform task force released its policy recommendations. Last December, Speaker Paul D. Ryan promised to “show what we would…

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Senators Identify Key Problems with Current Tax Code

Tuesday morning, the Senate Committee on Finance held a hearing entitled “Navigating Business Tax Reform” chaired by Senator Orrin Hatch (R-UT). Witnesses at the hearing…

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New Treasury Department rules demonstrate need for Tax Reform

The Treasury Department issued new rules and regulations this month making it more difficult for American-based multinational companies to avoid paying U.S. corporate taxes. Commonly…

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