Renacci unveils pro-growth plan to reform tax code, increase U.S. competitiveness

A plan unveiled by U.S. Rep. Jim Renacci (R-OH) on Thursday would establish a new pro-growth tax policy and replaces the corporate income tax with a single-digit consumption tax.

Renacci and his staff spent more than a year drafting the Simplifying America’s Tax System (SATS) plan with three overall goals – creating jobs, growing the economy and raising wages.

“It’s clear to me that our nation can’t settle for middle of the pack,” Renacci said. “A simple corporate rate reduction around the OECD average won’t stop companies from relocating overseas or being acquired by foreign companies located in jurisdictions with more pro-growth tax regimes. We need to tear down the wall of corporate level taxation and jump start our economy with a much needed overhaul.”

SATS would “significantly reduce marginal tax rates and the cost of capital,” which would lead to a 5.6 percent higher gross domestic product and as many as 1.9 million new jobs over the long term, according to an analysis by the Tax Foundation.

“SATS is a bold pro-growth solution to business tax reform that would make our tax system the most competitive in the world,” Renacci said. “It would also lower rates across the board so that Americans of all income levels will see a similar increase in after-tax income. Your success should be up to you, not the tax code.”