Forcing American businesses to defend all tax expenditures from the pejorative label of ďtax preferenceĒ is a mistake. It places an undue burden on Americaís job creators. Investments can and should be quickly expensed to ensure that the time value of money isnít lost. Productive investment should be encouraged, not discouraged, by tax reform in the midst of Americaís slow and sputtering recovery.
Hatch and Baucus, along with Treasury officials and other leaders in Washington, need to reverse the way they think about business tax preferences. True business tax reform will spark the economy and create jobs. Increasing the corporate tax burden on American businesses will only discourage investment, reduce government revenue and stifle job creation. America desperately needs tax reform, but it must be done right.
Gary Clyde Hufbauer is the Reginald Jones senior fellow of the Peterson Institute for International Economics.
Following the speeches from elected officials, the crowd stands at long tables as they dig into BBQ, brunswick stew, cadillac rice at the Law Enforcement Cookout at Wayne Dasher's pond house in Glennville, Ga., on Thursday, April 17, 2014.