Grover Norquist touts corporate tax cuts to Republican convention folks
President of Americans for Tax Reform, Grover Norquist wants to lower the corporate tax rate by 10%. During a breakfast at the Grand Hyatt overlooking The Courtney Campbell Causeway in Tampa this morning he said a 25% maximum corporate tax rate would bring more jobs to U.S. cities.
Norquist created a pledge for politicians he hopes they will consider and sign. Itâ€™s a written promise to not raise taxes and it plays into the plan to cut the corporate tax rate. Norquist said it holds elected officials and those seeking election more accountable.
â€œHaving elections where the politicians promise to do one thing and then when they get into office do what ever they God damn want is I guess technically democratic â€“ you had an election â€“ but it in no way reflects the will of the people.â€
Enough Congress members have signed it for the tax cut to pass a vote. So did presumptive Republican presidential nominee Mitt Romney and his running mate Paul Ryan. That leaves the Senate and the White House which are both controlled by Democrats who largely disapprove of the plan. Member of Congress Pat Tiberi, a Republican from Ohio said if Romney defeats President Barack Obama in the November election he could start the ball rolling to implement a massive overhaul to the tax code.
â€œI donâ€™t think he needs to have a specific plan. There are plans already out there including his own plan that is similar to our plan that I think is a huge starting point. Iâ€™d be a heck of a lot more hopeful with a Romney presidency in January in terms of getting this done.â€
According to Norquist, almost every developed industrial nation has a more corporate-friendly tax code. He said the Reagan administration in the 80â€™s started a global effort to simplify and reduce taxes for large companies thatâ€™s left the U.S. in the dust.
â€œTen million more Americans would be at work today if we had Reaganâ€™s period of economic growth measuring from the trough of the recession, apples to apples.â€
The group RATE, which stands for Reforming Americaâ€™s Taxes Equitably estimates that since 2000, a quarter of the worldâ€™s largest corporations have moved their headquarters to other countries. Norquist said incentivizing Fortune 500 companies with lower taxes would not only create more jobs, they would be high paying ones.
â€œThis is key if you want to raise revenue. If we grow at 3% a year over the next decade instead of 2% a year, the federal government gets an extra $2.5 trillion in higher revenue just from growth because more people are working, more people are earning more money, more income is there to be taxed.â€
The tax reform plan would also cut out some deductions and credits supporters say make it revenue neutral. Both Norquist and Tiberi hope states will implement similar tax plans to use as a model for the federal government.