How other states have paved the way for tax reform that spurs economic prosperity.
Madison, Wis. — The Institute for Reforming Government issued, “Growing Economic Prosperity – Lessons from Tax Reforms in the States,” which evaluates tax reform efforts in other states and provides four policy recommendations to ease the tax burden on Americans. In its first report detailing new policy recommendations released today, IRG highlights lessons learned from other states that successfully lowered taxes, provided greater transparency to taxpayers, broadened the tax base in their state, and created taxpayer controls. These types of reforms built stronger economies that created more businesses and jobs for working families while also producing more revenue for the state.
“The American people deserve to keep more of what they earn – plain and simple. Reducing the tax burden and effectively putting more decision-making power into the hands of the American people will not only spur economic growth, it increases transparency in government, inspires job creation, and benefits working families,” said Rob McDonald, Chairman of the Board for the Institute for Reforming Government.“Recommendations in this report should serve as a roadmap for lawmakers because it evaluates successful tax reform policies and the process to achieve them, while illustrating the need for tax reform around the country.”
IRG Tax Policy Recommendations:
To inspire economic growth, below are four recommendations that are a result of the policy analysis in the Growing Economic Prosperity – Lessons from Tax Reforms in the States report.
1. Enact taxpayer controls that put more decision making directly into the hands of taxpayers to approve spending or other policy changes, before lawmakers are able to increase taxes. This would help:
· Provide much greater transparency to taxpayers.
· Restrain government spending and keep governing bodies in check by the people who elected them.
· Increase economic growth leading to taxpayers keeping more of their hard-earned money.
· Limit tax increases by having parameters set by taxpayers, not lawmakers.
2. Ease the taxpayer’s burden of compliance by making tax laws simpler through fewer tax brackets and reduced steps in calculating the total tax bill. This would help:
· Give taxpayers more opportunity to save their own hard-earned dollars through lower taxes and simpler tax laws.
3. Reduce tax rates on personal income and business income. This would help:
· Contribute to bottom-up and top-down economic growth, which benefits everyone.
· Inspire job creation and create more stability for working families.
4. Broaden the tax base. This would help:
· Lower tax rates so that Americans can keep more of what they earn.
· Contribute to growth and build revenue.
· Level the playing field among businesses and job creators while facilitating the collection of tax revenue.
· Minimize preferential treatment in the tax code.
The Growing Economic Prosperity – Lessons from Tax Reforms tax report can be found here.
The summary of the report can be found here.