Yesterday Representative Dave Camp introduced fundamental tax reform legislation that will serve as a good first step in conservatives changing the discussion over tax reform. Unlike most recent proposals the Camp proposal first should be applauded for its boldness. Chairman Camp’s proposal is not a minor one, but a pro-growth re-write of the tax code. As the Wall Street Journal wrote today, the Camp plan aims “to lower tax rates and create a fairer, more efficient code, and his plan ought to shift the debate over taxes to growth from redistribution.”
Like with any proposal of this scope there is much to debate, and plenty of room to quibble, but as a whole it is a massive step in the right direction. Earlier today, here on the front page of Red State, Daniel Horowitz smartly noted that “Camp should be applauded for moving beyond platitudes and actually proposing a specific reform plan”—the bill will only be the first step in reworking the current tax system, but it is a crucial one.
One of the best outcomes for conservatives from the Camp proposal is that it shows the huge economic benefits that can be made with fundamental reform of our outdated, burdensome, and flawed tax system. By lowering rates and eliminating deductions our economy will be more competitive, create more jobs and produce greater economic growth. Currently, the American corporate tax rate is one of the highest in the world at 35%, and more than 4,400 changes to the tax code have occurred in the last 10 years, making it one of the most complicated as well. While other countries have been simplifying their codes and reducing rates, America has continued to add rules that place unfair burdens on businesses.
It is time for real reform of our personal and corporate income tax systems and I applaud Chairman Camp for standing up and making a concrete proposal. As conservatives we should applaud major steps like this in the direction of pro-growth reforms.