U.S. Chamber Says Current Tax System Punishes Savings and Investment

WASHINGTON, D.C. – In testimony before the House Ways and Means Committee today, the United States Chamber of Commerce called for fundamental reform of the tax code.

"The current tax code is cumbersome and overly complex. It distorts economic activity, places U.S. companies at a competitive disadvantage, and punishes saving and investment," said Dr. Martin Regalia, the Chamber's chief economist. "Our system of taxation is in dire need of a substantial overhaul, if not complete replacement."

The Chamber is weighing a number of specific alternative plans for tax reform, but according to Regalia there are certain issues that any reform proposal should address. "We need a system that is simpler and easier to understand, imposes lower compliance costs, doesn't penalize saving and investment, and does not place U.S. firms at a disadvantage to their foreign competitors.

"Moreover, the tax system must be compliant with the changing economy of the 21st century," he said. "Americans deserve a tax system that raises the necessary revenues in a manner that is not merely consistent with, but actually conducive to, economic growth."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

END

00-53