Conservative Solutions to a Broken Tax Code
The tax burden can be lowered in several ways. Any move to reduce individual and business rates will be one in the right direction, as are hand-in-hand initiatives to simplify the tax code. But for the economy, the way we pay taxes is almost as important as how much we are paying: A new Administration and Congress can agree to move toward a consumption-based tax system instead of one that punishes investment, saving, or giving money to your children.
It also matters where we are taxed. The United States is one of the world’s few countries to tax profits made overseas, even if they have already been taxed by another country. This creates a perverse incentive for corporations to keep their funds out of our economy. If he wishes to bring more money to America’s shores, our next President will support a territorial tax system.