Tax Reform

American businesses are the backbone of our economy. They create jobs, offer goods and services that raise the standard of living, and provide economic opportunity for millions of Americans. Unfortunately, due to existing tax policy, business owners find it more and more challenging to operate and grow their companies.

The current tax code is deeply complex, at over 74,000 pages long, adding high compliance cost to business operations. Americans spend 6 billion hours complying with the tax code every year while estimates show tax code compliance costs our economy $125 billion to $400 billion annually. The current tax code imposes high rates on corporate businesses and many small businesses – 83 percent of which file taxes through the individual income tax code.

The current tax code is also both anti-growth and discriminatory. It is anti-growth due to the double taxation on income saved or invested through the estate, gift, and capital gains tax. It is discriminatory because of the various tax credits, deductions, and exemptions for some individuals and businesses over others, particularly when it comes to the tax treatment of health insurance.

Reforming the tax code is essential to empowering businesses to flourish and grow our economy. Congress must take action to pass comprehensive tax reform that simplifies the tax code, establishes flat rates across the board for individuals and businesses, repeals double taxation and discriminatory provisions, and moves us from a worldwide to a territorial corporate tax system.

Briefs

The Need for Pro-Growth Tax Reform

Background: President Donald Trump, Speaker Paul Ryan and Senate Majority Leader Mitch McConnell made it clear before the November 2016 election that pro-growth tax reform would…

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Comprehensive Tax Reform

Background: American businesses are the backbone of our economy. They create jobs, provide goods and services that raise the standard of living, and offer economic…

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Blog posts

In Charts, How These 7 Taxpayers’ Bills Would Change If Tax Reform Were Enacted

By Rachel Greszler, Senior Policy Analyst, Center for Data Analysis at The Heritage Foundation. How will you fare if the GOP tax plan is enacted?…

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In 1 Chart, the Differences Between the House and Senate Tax Reform Bills

By Adam Michel, Policy Analyst, Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation. The House and Senate have now each passed…

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The Differences House, Senate Will Have to Resolve to Advance Tax Reform Bill

By Rachel del Guidice, Reporter for The Daily Signal. Following the Senate’s 51-49 early Saturday morning vote to pass Republicans’ tax reform overhaul, the legislation will move to…

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After Months of Inaction, Senate Republicans Must Seize Chance to Pass Tax Reform

By Mike Needham, Chief Executive Officer, Heritage Action for America. After nearly 11 months of careening from one disappointment to another, Congress is on the…

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No, Republicans Are Not Leaving Small Businesses Behind

By Adam Michel, Policy Analyst, Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation. The Senate Finance Committee passed a version of the Tax…

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Why Eliminating Obamacare’s Individual Mandate Should Be Part of Tax Reform

By Rachel Greszler, Research Fellow in Economics, Budget and Entitlements at The Heritage Foundation. Obamacare’s individual mandate survived the Supreme Court’s 2012 ruling on the…

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Q&A: Rep. Jim Banks Talks About the Benefits of Tax Reform

Rep. Jim Banks, R-Ind., spoke to The Daily Signal’s Genevieve Wood earlier this month, before the tax reform bill passed the House, about how eliminating…

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How the GOP Tax Bill Will Affect the Economy

By Parker Sheppard, Senior Policy Analyst, Center for Data Analysis at The Heritage Foundation, and David Burton, Senior Fellow, Roe Institute for Economic Policy Studies…

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Taxpayers shouldn’t be forced to subsidize California’s spending addiction

By Dan Holler, Vice President, Heritage Action for America. Buried within the more than 74,000 pages of our nation’s tax code lies a special tax…

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How Tax Reform Would Simplify Taxes for Tens of Millions

By Rachel Greszler, Research Fellow, Economics, Budget and Entitlements at The Heritage Foundation. Lawmakers have long championed a system that allows Americans to fill out…

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5 Ways to Improve the Tax Cuts and Jobs Act

By Adam Michel, Policy Analyst, Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation. The Tax Cuts and Jobs Act would provide tax…

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PRESS RELEASE: HOUSE REPUBLICANS UNVEIL TAX REFORM PLAN

NOVEMBER 2, 2017 Washington — This morning, the House Ways and Means Committee released preliminary legislative text of a sweeping overhaul of America’s long outdated tax…

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VIDEO: Dan Holler on FBN’s “Varney & Co.” talking about the GOP tax plan

Dan Holler, Vice President of Heritage Action for America, joined Fox Business Network Stewart to discuss tax reform on November 2, 2017. The House Ways and…

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Small Business Owner in Trump Country Explains Why Tax Reform Will Help the 99%

By Kelsey Harkness, Senior News Producer at The Daily Signal. SEDALIA, Mo.—As Republicans prepare to unveil the details of their major tax reform proposal this…

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How Keeping the Property Tax Deduction Could Backfire on the Middle Class

By Rachel Greszler, Research Fellow in Economics, Budget and Entitlements at The Heritage Foundation. On the eve of the release of their tax reform proposal,…

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Keeping the Death Tax Would Make No Sense at All

By Kevin Dayaratna, Senior Statistician and Research Programmer, Center for Data Analysis, Institute for Economic Freedom and Opportunity at The Heritage Foundation, and Adam Michel,…

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Conway, McMorris Rodgers Tout Tax Reform to Minority Entrepreneurs

Casey Ryan, Member of the Young Leaders Program at The Heritage Foundation. A counselor to the president and the chairwoman of the House Republican Conference…

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Why Adding a New Top Income Tax Rate Is a Bad Idea

By Rachel Greszler, Research Fellow in Economics, Budget and Entitlements at The Heritage Foundation. One of the most critical ingredients in “pro-growth” tax reform is lowering…

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Don’t Believe False Reports That Say Eliminating The SALT Deduction Would Cost The Average Taxpayer Tens Of Thousands Of Dollars

By Rachel Greszler, Research Fellow in the Institute for Economic Freedom at The Heritage Foundation. Some politicians are determined to retain a special tax deduction…

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Here’s How We’re Making Real Progress Toward Tax Reform

By Senator Mike Lee, Republican from Utah. It’s not every day that good news comes out of Congress, but last week the United States Senate…

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Deduction for State and Local Taxes Stunts Economic Growth, Group Warns

By Ian Snively, Member of the Young Leaders Program at The Heritage Foundation. Congress should get rid of federal taxpayers’ deduction for state and local…

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Here’s How the Tax Code Helps Rich Taxpayers in Big Government States Pay Less

By Jarrett Stepman, Reporter for The Daily Signal. As Congress works on tax reform, it is worth noting how politicians and interest groups use the…

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Trump: Tax Reform ‘Will Lift Our People From Welfare to Work’

By Fred Lucas, White House correspondent for The Daily Signal. President Donald Trump promoted his tax reform plan at The Heritage Foundation’s President’s Club, and…

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Our Tax Code Rewards Bad State Policies and Favors the Wealthy. That Needs to Change.

By Rachel Greszler, Research Fellow in Economics, Budget and Entitlements at The Heritage Foundation. One of the many reasons we need tax reform is that…

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It’s Time to Reform Our Tax Code. Let’s Do Something Historic.

By Paul Ryan, 54th speaker of the House of Representatives. Note: House Speaker Paul Ryan spoke at The Heritage Foundation on Oct. 12. The following…

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Some Say GOP Tax Plan Would Raise Taxes. Here’s What They’re Missing.

By Kevin D. Dayaratna, Senior Statistician and Research Programmer, Center for Data Analysis, Institute for Economic Freedom and Opportunity at The Heritage Foundation, Adam Michel, Policy…

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Who Wins and Who Loses with Tax Reform?

By Genevieve Wood, Senior Communications Advisor and Senior Contributor, The Daily Signal. Let’s be honest, if the tax plan currently being debated in Washington becomes…

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This Critical Part of Tax Reform Would Help Liberate Small Businesses

By Sondra Clark, Managing Director of Communications and Grassroots at Heritage Action for America. Americans have always fostered a spirit of entrepreneurship. We take pride…

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This Key Change Will Bring Money Pouring Back Into the US

By Sondra Clark, Managing Director of Communications and Grassroots at Heritage Action for America. President Donald Trump once called our tax code a “giant self-inflicted…

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How the Current Tax Code Disfavors American Workers

By Scott Asbjornson, executive of AAON, Inc., an HVAC company based in Tulsa, Oklahoma. The U.S. tax code is 4 million words long, so it’s no surprise…

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A Revised Tax Code Could Make Filing Your Taxes Much Faster, Cheaper

By Sondra Clark, Managing Director, Communications and Grassroots, Heritage Action for America. Keep it simple. This mantra of simplicity has been ignored for far too long…

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PRESS RELEASE: Heritage Action Applauds GOP Tax Proposal

SEPTEMBER 27, 2017 Washington — Today, Republicans will unveil new details of a sweeping overhaul of America’s tax code. The plan would unleash economic growth, create…

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Conservatives Encouraged by Republican Framework for Tax Reform

By Rachel del Guidice, reporter for The Daily Signal. Any tax reforms passed by Congress should give relief to middle class families and small businesses,…

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A tax cut for all Americans

By Dr. Ed Feulner, founder and president of The Heritage Foundation. When you hear the phrase “corporate tax cut,” what do you picture? Middle-class workers, or…

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Full Expensing and Meaningful Tax Reform

By Sutton Truluck, Research Assistant, Heritage Action for America. The Trump presidential campaign and congressional Republicans made numerous promises to Americans throughout the 2016 election…

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VIDEO: Adam Michel on CNN to Discuss Tax Reform

Adam Michel, Policy Analyst, Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation, Appears on CNN's At This Hour with Kate Bolduan…

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Trump’s September Budget Deal Could Move Tax Reform

By Romina Boccia, Deputy Director, Thomas A. Roe Institute at The Heritage Foundation. This week’s budget deal is fiscally irresponsible. But it just may have cleared the…

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Cruz Highlights 7 Ideas for Tax Reform

By Rachel del Guidice, reporter for The Daily Signal. Sen. Ted Cruz thinks tax reform can help the average American. Tax reform is all about…

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Trump Is Right. ‘Our Tax Code Is a Giant, Self-Inflicted Economic Wound.’

By Adam Michel, Policy Analyst, Thomas A. Roe Institute for Economic Policy Studies In his second speech in two weeks on the need for tax…

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3 Ways the US Tax Code Is Killing Our Economy’s Potential

By Sondra Clark, Managing Director of Communications and Grassroots at Heritage Action for America. President Donald Trump, Speaker Paul Ryan, and Senate Majority Leader Mitch…

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VIDEO: Michael Needham discusses tax reform

Heritage Action for America’s CEO Michael Needham discusses tax reform on Bloomberg TV.…

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Trump Says Tax Reform Could Create ‘Millions and Millions of New Jobs’

By Fred Lucas, White House correspondent for The Daily Signal. President Donald Trump hit his campaign themes of bringing back American jobs and raising wages…

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OPINION: The key to passing tax reform: Keep it simple, stupid

By Stephen Moore, Distinguished Visiting Fellow for Project for Economic Growth at The Heritage Foundation. One of the most enduring lessons from the ObamaCare fiasco is…

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Taxes, Regulations Hurt Economy

By David W. Kreutzer, Ph.D, Senior Research Fellow, Labor Markets and Trade at The Heritage Foundation. If bigger government, higher taxes, larger subsidies, more regulations…

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VIDEO: Dr. Feulner discusses tax reform and Trump, Congress.

The Heritage Foundation’s President Dr. Ed Feulner discusses tax reform and the relationship between President Trump and Congress on Fox Business Network.…

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How the Senate’s baseline budget could make or break tax reform

By Romina Boccia, fiscal and economic expert at The Heritage Foundation, and Adam Michel, policy analyst at The Heritage Foundation. Tax reform is one of the…

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This Key Reform Must Be Central to Any New Tax Plan

By Salim Furth, Research Fellow in Macroeconomics at The Heritage Foundation, and Adam Michael, Policy Analyst in the Thomas A. Roe Institute at The Heritage Foundation.…

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Tax Reform for Investment and Jobs

By Adam Michael, Policy Analyst for the Thomas A. Roe Institute at The Heritage Foundation. Fixing a quirk in the U.S. tax code would let businesses…

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These Obama Regulations Make a Strong Case for Tax Reform

By Adam Michel, Heritage Foundation Policy Analyst & Jacob Lubenow, member of the Young Leaders Program at The Heritage Foundation. Congress is pivoting to tax reform,…

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A Conservative View of Trump vs. Amazon

By Dan Holler, Vice President of Heritage Action For America Amazon’s successful business model is “destroying department stores and retailing all over the country,” President Donald…

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Michael Needham discusses next steps for tax reform

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GOP ‘Tax Principles’ Signal Strong, Pro-Growth Plan

Washington — Today, a group dubbed the “Big Six” released a broad set of principles to provide directions to a long-awaited overhaul of America’s cumbersome and…

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Republicans Just Made Tax Reform More Difficult

By Adam Michel, Heritage Foundation Policy Analyst This week, the House Budget Committee released its long-awaited budget. It makes progress in some areas, and falls short in others.…

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Business Owner Legislative Strategy Call 07/20/17

Yesterday conservatives working in the business owner community all came together for our monthly Legislative Strategy Call. During the call, we heard from Heritage Action’s Wesley Coopersmith, Policy…

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Repealing This Obamacare Tax Would Signal That Tax Reform Is Alive

By Adam Michel, Heritage Foundation Policy Analyst The Senate is seriously considering keeping Obamacare’s 3.8 percent net investment income tax as part of it’s most recent repeal…

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A Pathway for Pro-Growth, Fiscally Responsible Tax Reform

By Adam Michel, Heritage Foundation Policy Analyst and Chase Flowers, member of The Heritage Foundation's Young Leaders Program. The tax code is in dire need of…

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Congress’ Inaction on Trump’s Agenda Costs America Nearly 1,000 Jobs Per Day

By Edwin J. Feulner, President of The Heritage Foundation “Drain the swamp!” It was the battle cry of Donald Trump’s presidential campaign. Many Republican members of Congress echoed that…

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GOP Wants to Pay for Tax Cuts with a Tax Increase

Last week House Speaker Paul Ryan assured the country that tax reform is still coming despite uncertainty surrounding the repeal and replace of Obamacare. Speaker…

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If Congress Is Serious About Tax Reform, It Should Stop Passing Bills Like This

By Adam Michel, Heritage Foundation Policy Analyst House Speaker Paul Ryan doubled down earlier this month on getting tax reform done by the end of…

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This Key Reform Must Be Central to Any New Tax Plan

By Salim Furth, Heritage Foundation Research Fellow in Macroeconomics & Adam Michel, Heritage Foundation Policy Analyst As Congress and the president move toward consensus on…

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Video: Principles for Tax Reform: A Conversation with the House Freedom Caucus

Watch as members of the influential House Freedom Caucus lay out their principles for tax reform and the path forward in the 115th Congress. https://www.facebook.com/heritagefoundation/videos/10155382490189481/…

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Phased-In Border Adjustment Tax Plan Is A Non-Starter

Washington — According to reports, House Ways and Means Committee Chairman Kevin Brady (R-TX) “floated a five-year phase-in to his controversial ‘border adjustment’ idea on…

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New Data Show That Ignorance of US Tax Policy Fuels Leftward Sentiments

By Elizabeth Fender, Market Research Associate at The Heritage Foundation. With federal Tax Day now here, taxes have been on many people’s minds and have…

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House Conservatives Ready to ‘Go Big’ on Tax Reform That Includes Welfare Reform

By Fred Lucas, White House Correspondent for The Daily Signal The House Freedom Caucus wants to “go big” on a tax reform package to include welfare…

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Congress Should Leave the Border Adjustment Tax Behind

By Adam Michel, Policy Analyst at The Heritage Foundation BAT, RIP? That’s what some people are claiming. And with good reason. The border adjustment tax…

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Business Owner Legislative Strategy Call 05/17/17

Yesterday conservatives working in the business owner community all came together for our monthly Legislative Strategy Call. During the call, we heard from Wesley Coopersmith – Policy Manager…

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President Trump’s Simplifications to Tax Code Are Key to Economic Growth

Last week President Trump unveiled his plan for the “biggest individual and business tax cut in American history.” However, it still didn’t take long for…

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Put America First by Fixing the Tax System

By Adam Michel, Policy Analyst at The Heritage Foundation Tell someone that the U.S. tax system needs to be fixed, and you’re not likely to…

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The Most Taxing Time of the Year

By Edwin J. Feulner, Former President of The Heritage Foundation, Chairman of the Asian Studies Center How does tax season make you feel? Angry? Tired?…

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How to Talk Taxes in Simple Terms

By Beverly Hallberg, President of District Media Group If you’re in need of a great dinner party topic, try taxes. We pay taxes, we complain…

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Here Are 6 Reasons to Lower the Corporate Tax Rate Immediately

By Timothy Doescher, Research Associate at The Heritage Foundation & Karl Keyzer-Andre, member of the Young Leaders Program at The Heritage Foundation. At close to 40 percent…

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Business Owner Legislative Strategy Call 03/16/17

Yesterday, conservatives working in the business community all came together for a our Monthly Legislative Strategy Call to discuss tax reform and Obamacare repeal. During…

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Don’t Look To The Export-Import Bank To Create Jobs

Last week President Trump took a detour on his way to a weekend rally in Florida stopping at a Boeing plant in South Carolina. Trump…

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Business Owner Legislative Strategy Call 02/15/17

Yesterday, conservatives working in the business community all came together for a our Monthly Legislative Strategy Call. During the call we discussed the current Congressional…

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Congress Should Repeal the Death Tax

This Wednesday, Rep. Mac Thornberry (R-TX) introduced legislation to fully repeal the federal estate and gift tax named the Death Tax Repeal Act (H.R. 198).…

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Supreme Court Refuses to Hear Challenge to Colorado’s Internet Sales Tax

Last Monday, the U.S. Supreme Court declined to hear a challenge to a Colorado state law forcing out-of-state retailers to report their customer’s purchases to…

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Tax Reform a “First Priority” Under the Trump Administration

President-elect Donald Trump has been making a number of administrative appointments over the last few weeks. On Wednesday, President-elect Trump nominated a former Goldman Sachs…

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Heritage Action Opposes Special Tax Breaks for Renewable Energy

Members of Congress will return to Washington, D.C. after the Presidential election on November 14th for a lame-duck session of Congress. Historically speaking, politicians use…

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Internet Sales Tax Legislation Is ‘Taxation Without Representation,’ Conservatives Say

By Leah Jessen, News Reporter for The Daily Signal Conservatives are wary of internet sales tax legislation in the works that would create an “unlevel…

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Obama’s New Death Tax Threatens Family Farms and Businesses

Special Guest Blog: Congressman Warren Davidson (R-OH) We all knew President Barack Obama’s lame-duck presidency would be bad, but for the millions of Americans who…

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The State of Tax Reform in 2016

By Curtis Dubay, Heritage Foundation Economic & Tax Expert Tax reform remains a central issue in Washington because of its overwhelming necessity. Tax reform is…

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Video: What Pro-Growth Tax Reform and Conservative Health Care Reform Should Look Like

https://www.youtube.com/watch?v=b9ev9fB2UU0 Watch Heritage Foundation scholars Paul Winfree and Ed Haislmaier, along with CEO of Juniper Research Group Chris Jacobs, discuss the impact that an outdated tax…

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Goodlatte’s Internet Sales Tax Plan Is Better, but Still Falls Short

By Heritage Foundation scholars Curtis Dubay and James Gattuso House Judiciary Chairman Bob Goodlatte, R-Va., has reignited the debate over state taxes on out-of-state (mostly…

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Clinton’s Small Business Plan is More Government

Democrat presidential nominee Hillary Clinton will roll out her plan to make American small businesses great again, or in her words: “to support small businesses…

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Trump Calls for Lower and Equal Tax Treatment of U.S. Businesses

Earlier this week, Republican presidential candidate Donald Trump unveiled his revised tax reform proposal in a speech at the Detroit Economic Club. In his speech,…

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Government Regulations Burning Employer’s at Both Ends

Guest Blog: Jordan Alvarez The term ‘business owner’ is thrown around quite a bit – so much so that we forget it’s true meaning.  Business…

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Business Owners “Did Build That”

Guest Blog: Mark Adamson As an entrepreneur and small business owner, I know what it takes to run a successful company. I own and operate…

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Americans will Spend Almost 9 Billion Hours Complying with the Tax Code

According to the latest research conducted by the Tax Foundation, Americans will spend over 8.9 billion hours complying with IRS tax filing requirements in 2016,…

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New Survey Shows what Issues Really Matter to Small Business Owners

The National Small Business Association (NSBA) recently released the results from their 2016 Politics of Small Business Survey just four months before the Presidential general…

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Blueprint for Pro-Growth Tax Reform Released

Last Friday, House Republicans released a blueprint for comprehensive tax reform as part of the GOP’s larger campaign reform agenda named “A Better Way.” While…

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Heritage Action Praises Tax Reform Task Force

Washington — Today, the House Republican’s tax reform task force released its policy recommendations. Last December, Speaker Paul D. Ryan promised to “show what we would…

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Heritage Action Praises Tax Reform Task Force

Washington — Today, the House Republican’s tax reform task force released its policy recommendations. Last December, Speaker Paul D. Ryan promised to “show what we would…

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Senators Identify Key Problems with Current Tax Code

Tuesday morning, the Senate Committee on Finance held a hearing entitled “Navigating Business Tax Reform” chaired by Senator Orrin Hatch (R-UT). Witnesses at the hearing…

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New Treasury Department rules demonstrate need for Tax Reform

The Treasury Department issued new rules and regulations this month making it more difficult for American-based multinational companies to avoid paying U.S. corporate taxes. Commonly…

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