Tax Code Reform Should Not Put Economy at Risk
Now that our government is back in business, both political parties say they want to find long-term solutions to our country’s fiscal woes. That could mean striking a deal to cut spending, reduce the debt, and have another go at reforming – or simplifying – the nation’s tax code.
I anticipate trouble when politicians say they want to make things simpler. Such rhetoric in the past has meant efforts to close so-called “loopholes” in our tax code. The president and his allies in Congress classify these “loopholes” as government “handouts” or “subsidies” but this couldn’t be further from the truth. In fact, they are vital business tax deductions put in place to keep American companies competitive and help move our economy forward.
The energy industry has been a frequent target for the loophole-closing efforts. That would be the same industry that invested more than $56 billion in our economy in 2012 and supports more than nine million jobs.
Reforming our overly complicated tax code is not a bad idea. But if making it simpler means hamstringing jobs and investment-creating businesses and putting our still-fragile economy at risk, it’s simply not worth it.
Jake Teshka is the Executive Director of the St. Joesph County Republican Party and was recognized in the Top 25 Under 25 in Indiana Politics Class of 2012.