July 17, 2017

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Financial Industry Supports Tax Reform to Bolster Economic Growth

FSR strongly supports the Committee’s overall goal of enacting a simpler, fairer, and a more efficient tax code that significantly reduces tax rates on individuals, businesses, and investment income. Such reforms will create jobs, increase wages, bolster economic growth, and make America a more attractive place to invest.

Financial Industry Supports Tax Reform to Bolster Economic Growth
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Financial Industry Supports Tax Reform to Bolster Economic Growth

Offers perspectives in letter to Senate Finance Committee Chairman Hatch

 

WASHINGTON – The Financial Services Roundtable (FSR) today sent a letter to Senate Finance Committee Chairman Hatch outlining its support for the Committee’s work to improve the American tax system in ways that bolster economic growth and create opportunity for more individuals and businesses.

“FSR strongly supports the Committee’s overall goal of enacting a simpler, fairer, and a more efficient tax code that significantly reduces tax rates on individuals, businesses, and investment income,” FSR CEO Tim Pawlenty wrote. “Such reforms will create jobs, increase wages, bolster economic growth, and make America a more attractive place to invest.”

In its letter, FSR also urged the Committee to bear in mind the financial industry’s unique business model to perform its critical roles as financial intermediaries, and to not impose industry-specific taxes that single out any sector for adverse treatment.

“FSR recommends the Committee give favorable consideration to tax policies that increase consumers’ access to affordable retirement and insurance products, promote capital formation, facilitate consumer and business lending, and allow financial institutions to facilitate private-sector investments,” Pawlenty wrote.

Regarding individual tax issues, FSR supports lower individual marginal rates as a means of providing relief to taxpayers as well as greater incentives to work, save, and invest. FSR also supports protecting the mortgage interest deduction, a long-standing incentive that tens of millions of middle-class taxpayers rely on to encourage homeownership.

FSR noted its support for significant rate reductions on income earned by businesses of all kinds and urges caution regarding possible limitations on the deductibility of business interest or potential policy changes that could result in reduced private-sector investment in America’s local communities or the nation’s infrastructure.

FSR believes tax reform is an opportunity to protect and enhance retirement security through increased incentives for hard-working Americans and supports lowering rates on investment income to promote capital formation and spur needed investments in the economy.

In addition to very high tax rates on business income, FSR believes the current tax code’s antiquated and anti-competitive worldwide system of international taxation is another significant drawback for American businesses serving consumers around the world. FSR supports shifting to a territorial tax system which would be more in line with those used by our global trading partners and under which U.S. businesses would generally be taxed only on their domestic earnings.

 

To read FSR’s full letter to Chairman Hatch, click here

 

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About The Author

The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs.

Follow @FSR