Elaine Kamarck and James Pinkerton - RATE Coalition Co-Chairs. Re: 2014 Midterms and Tax Reform. Date: November 12, 2014
To:
Interested Parties
From:
Elaine Kamarck and James Pinkerton - RATE Coalition Co-Chairs
Re:
2014 Midterms and Tax Reform
Date:
November 12, 2014
In the days following the midterm elections, elected officials and pundits alike have singled out tax reform as one of the few issues capable of uniting a Republican Congress and Democratic Administration. They’re right, tax reform has support from both sides of the aisle and on both ends of Pennsylvania Avenue. Tax reform is something that can, and should be done early next year. Despite this consensus, skepticism remains in some quarters. We reject these arguments. In fact, we believe that the sentiments voters expressed last Tuesday clearly showed an appetite for pursuing consensus and getting things done. That makes this the best political climate for tax reform in years. Consider the following: 1. It’s (still) the economy, stupid. The economy was by far the most important issue for voters last Tuesday. Exit polls demonstrated that slow economic growth, persistent unemployment and stagnant wages were the issues that caused voters the most concern, across the partisan spectrum. Perhaps even more strikingly, voters expressed little optimism that their economic concerns would be heard, let alone addressed. Put simply, pursuing tax reform will address those concerns. Enacting tax reform that makes the system fairer and simpler and American companies more competitive will not only show voters that lawmakers are listening, but will invigorate the economy. www.RATEcoalition.com
[email protected] | 866-832-4674 | P.O. Box 33817, Washington DC, 20033
Studies from across the spectrum show that reform that updates the code for the first time in three decades and lowers the corporate rate to an internationally competitive threshold will boost economic growth by 1 – 2 percent and create almost 600,000 jobs per year. 2. Taxes were on the ballot in 2014, and voters rewarded reformers. Across the country, governors that focused on implementing simpler tax systems and more competitive rates in their states were rewarded with reelection. Similarly, candidates for the U.S. House and Senate, including incoming members of the freshman class of both legislative bodies such as Senators-elect Capito, Cotton and Peters, routinely cited today’s complex code and uncompetitive tax rates as issues they wanted to address once elected. This is a lesson for the future, as well. The polls had barely closed last week before the discussion turned to the 2016 election. While policy debates in Washington will invariably be taken over by the upcoming presidential race sooner rather than later, getting tax reform done is far more important to the country than preserving it as an issue for the next campaign. The 2014 election proves that voters prefer and respond favorably to a record of accomplishment on taxes. Both parties should take notice, and move forward on tax reform early in 2015. 3. Voters want Washington, D.C. to work again. Fierce partisanship has been the hallmark of the last few years, and has become all-too common in our politics. Voters want the parties in Washington to work together. Tax reform could provide a path forward. In a recent poll, voters overwhelmingly believe that both parties need to work together in 2015 to update the tax code and make it work for American families and businesses. There is no better way of proving conventional wisdom wrong—and showing voters that Washington gets it— than by taking up and passing tax reform next year.
% Strongly Agree
%Total Agree
% Total Disagree
84%
95%
4%
72%
93%
4%
51%
81%
15%
47%
76%
18%
Republicans and Democrats need to work together to update the U.S. tax code and get America back working at its full potential Congress has not made significant reforms to the U.S. tax code since 1986. The Next Congress needs to update the tax code so that it works better for today’s families and businesses. The U.S. tax code has a major influence on the country’s ability to create jobs and grow the economy. Making the U.S. tax code simpler and more fair will spur economic growth and opportunity faster than any other action the government could take.
* Public Opinion Strategies National Pre-Election Survey, Oct.30 – Nov. 2, 2014
The last word: While the election is behind us, many policy and political battles remain. The mood of the electorate in 2014 and the looming 2016 election both suggest that 2015 may offer the best opportunity for tax reform since it was last accomplished in 1986. It’s time for action.
Elaine Kamark and James P. Pinkerton are the co-chairs of the RATE Coalition.
