With Treasury Secretary Henry Paulson appearing before the House Ways and Means Committee this morning, U.S. Rep. Dave Camp stated that future economic growth hinges on an overhaul of the tax code and restructuring the nation’s corporate tax laws.

“For the U.S. economy to truly grow, be competitive, and create jobs, Congress needs to examine the tax code’s deep, fundamental flaws,” said Camp, a senior member of the committee.  “By making the 2001 and 2003 tax cuts permanent and reducing the corporate tax rate to, for example, the OECD average rate of 31 percent, the United States can compete for jobs in this increasingly shrinking world of commerce.”

Camp noted that in 1960, America was home to 18 of the world’s 20 largest corporations, yet three decades later that number had shrunk to eight. 

“We know why,” Camp continued, “virtually every other industrialized nation has reduced tax rates leaving us with the second highest corporate tax rate. It’s been 20 long years since Congress successfully embarked on a comprehensive plan to lower people’s tax rates.  Its time we streamline the code, make it simpler for taxpayers to comply with, and lower the tax burden on families and business owners.  I wish the Administration had used this budget to push for comprehensive reform of the tax code.”

Noting that revenues flowed into the Treasury and the economy grew after Republican cut taxes in 2001 and 2003, Camp warned that following the majority’s plan to let those measures expire would be, “exactly the wrong approach to helping a faltering economy.”

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