Time to Reform Complex Tax Code

There are very few “teaching moments” in politics, but the drama surrounding the current debate over the fiscal cliff is one of them. As it unfolds, it is becoming clear that it is time for comprehensive tax reform. Last reformed in 1986, America’s Tax Code was once the envy of our trade competitors. By broadening the base and lowering the overall rate, President Ronald Reagan and House Speaker Tip O’Neill set the tax standard for the rest of the world that led to two decades of unparalleled economic success. In the years between then and now, other nations noted America’s achievement and followed suit with their own reform. Over the next 25 years, all of our competitors continued to lower their tax rates to the point that the American corporate tax rate of 35 percent is now the highest in the world.