Plans by President Trump and conservative governors to cut taxes are getting a big push in a new report that urges sweeping reforms in personal and business taxes to let Americans keep more of what they earn and spark wider job creation.
In a new report from the Madison, Wisconsin-based Institute for Reforming Government, revamping and cutting taxes are also being urged to put some controls on out-of-control government spending and to bring transparency to how money is used once it is handed over by taxpayers.
The report, shared with Secrets in advance of its release, isn’t a collection of lofty think tank ideas but a list of reforms already used in key states and that have proven results.
In “Growing Economic Prosperity – Lessons from Tax Reforms in the States,” recommendations include giving taxpayers greater say in how money is spent, simplifying the process, cutting personal and business taxes, and limiting loopholes.
“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,” he added.
The report is one of the first projects released since former Wisconsin Gov. Scott Walker became honorary chairman of the group. As governor, he instituted many reforms that have been followed by other governors.
It comes at a crucial time as the president and states eye tax cuts and reforms to keep the economic boom going amid signs that it might be ending. Trump, for example, is considering a payroll tax cut that would help middle and low income Americans.
The report seeks more than just tax cuts. It also calls for reforms that would help businesses expand and give taxpayers more control.
The recommendations:
- 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.
- 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.
- Reduce tax rates on personal income and business income.
- Broaden the tax base.
