America's Small Business Tax Relief Act of 2015

Floor Speech

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Mrs. FISCHER. Madam President, I rise to discuss an issue of importance for Nebraskans and Americans all across this country; that is, the need for comprehensive tax reform.

It is no secret the current Tax Code is overly complex and outdated. Any American can tell you how frustrating it is to file a tax return. Our Tax Code is riddled with deductions, exemptions, credits, exclusions, preferences, and loopholes that make it nearly impossible for anyone without a degree in tax law to understand.

At the same time, we should recognize that some progress has been made. Thanks to the work of Chairman Hatch and members of the Senate Finance Committee, many important updates to the Tax Code were made permanent at the end of last year. In particular, increasing the deduction limit and making permanent section 179 of the Tax Code was an important step. This section allows small businesses to deduct from their taxes certain depreciable business assets. My constituents told me annual uncertainty about whether section 179 would be renewed made it very difficult for them to plan, to invest, and to grow their businesses. Making this provision permanent reduced the ambiguity that had plagued Nebraska's small business owners and operators.

Although we have made some progress in reforming the Tax Code, there is more work to do for the American people. I believe tax reform should focus on several principles, including competitiveness, simplicity, and economic growth. At nearly 40 percent, the United States has the highest combined corporate tax rate in the developed world. This is stifling job growth, hurting families, and compelling businesses to move overseas. Any comprehensive plan should seek to lower this rate to a competitive level, one that will not only encourage current businesses to stay but also incentivize new businesses to set up shop.

Another goal of comprehensive tax reform should be to simplify the Tax Code. Families and businesses spend billions of hours every year in completing their taxes. A disproportionate share of this burden is shouldered by many small businesses. Many of these are family businesses, and they don't have the resources to easily comply.

Creating a tax system that is simple and efficient will reduce administrative and compliance costs. A simple tax system will also increase transparency, allowing Americans to fill out their taxes accurately while preventing fraud and lost revenue. Perhaps most importantly, any plan to reform the Tax Code--well, it must spur economic growth. Inaction on reforming the Tax Code is delaying needed growth in GDP, jobs, and investment.

When I was first elected to the Senate, I thought my colleagues and I would immediately take up two issues to restart our economy, grow jobs, and help all American families: tax reform and reducing the overburden of government regulations. After all, it is pretty obvious these are two issues we can reform that would have a positive impact on our economy. We see regulations become ever more burdensome, and they continue to depress our economy, stifle innovation, and hurt our families.

Major tax reform has not happened. We continue to chip away, but I believe now is the time we step up and be bolder. We must make the necessary reforms to our tax system to give Americans confidence in our future. We need to help put more money back in the pockets of hardworking Americans and allow them to spend money on the goods and services they choose and that they need.

It is my hope my colleagues will join me in continuing this discussion and that this dialogue then will eventually result in action, in comprehensive tax reform that truly benefits Nebraskans and the American people.

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