- Fiscal Stability: We have spent the past few years stumbling from one fiscal crisis to the next. As a result, businesses large and small find themselves with no ability to plan beyond a single quarter; it’s not an environment conducive to investment. That’s one of the reasons the two-year Murray-Ryan budget deal approved last month – while not perfect – is a breath of fresh air. It offers some predictability for businesses to invest over a longer planning horizon. It also provides some breathing room for Congress and the Administration to now tackle the other three urgent priorities to get our economy growing faster – tax reform, expanded trade and immigration reform.
- Tax Reform: Congress should enact comprehensive tax reform for all businesses – large and small – with competitive tax rates and a modern system of taxation for overseas earnings. Tax reform also means removing barriers to bringing overseas earnings back to the United States. Research shows that a one-percentage-point decrease in the average corporate tax rate would result in an increase in real U.S. GDP of between 0.4 to 0.6 percent within one year.
Expanded Trade: Congress should enact Trade Promotion Authority legislation to strengthen the hand of U.S. negotiators and help complete the Trans-Pacific Partnership, Transatlantic Trade and Investment Partnership, and Trade in Services Agreement, as well as future U.S. trade agreements. Today, we need to ensure that consumers, workers and businesses can all benefit from opening more foreign markets in Asia and Europe for U.S. goods and services.
Immigration Reform: America’s unique competitive advantage has always been its ability to attract the best talent. Congress should fix the broken immigration system to create a larger pool of visas for higher-skilled workers, enact a new visa system for lower-skilled workers, offer a path forward for undocumented workers already living in the United States, and allocate greater resources to strengthen enforcement and secure our borders. Done right, reform can increase our economic growth rate, reduce our deficit, and contribute significantly to America’s future.