iTax: US Tax Code Rotten to the Core

Earlier this week Apple CEO Tim Cook appeared before a Senate Subcommittee to discuss Apple’s tax practices. As Cook asserted, “We pay all the taxes we owe — every single dollar.”

The problem isn’t just that Apple and other companies keep money offshore, it’s also that our tax code is too complex. Big businesses, like Apple, have a dedicated, full-time staff of tax attorneys and accountants on hand to help figure out how to pay their taxes by the current tax code.

Most small businesses don’t have that luxury or the option to keep their earnings offshore since they are based solely here in the U.S. Ninety-one percent (91) of NFIB members hire a tax professional each year to just to file their income taxes. While this is great for all the tax professionals out there, it doesn’t take away from the fact that our system is too complex and siphons off much-needed resources that the small business owner could reinvest into their business.

In a recent study conducted by NFIB, 85% of NFIB members think Congress should fundamentally revise the federal tax code in 2013. High tax rates and the complexity of the current tax code are persistent problems for small business owners . Seventy-one (71) percent of NFIB members agree that any tax overhaul should result in lowering the tax burden.

Small businesses are a major source of economic growth and job creation , but small businesses are still struggling to recover from the recession .A less complicated tax code would reduce the cost of doing business and create a stronger business environment supporting the overall economy.

NFIB supports the following principles for tax reform:

  • Reform needs to include both individual and corporate tax codes
  • Tax rates on corporate and pass-through businesses should stay equal and low
  • Tax reform should promote economic growth and simplify the tax codetax-survey-nfib-bar-graph
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About Dan Danner

Donald A. "Dan" Danner was named president and CEO of the National Federation of Independent Business, the nation's leading small business association, in February, 2009. Danner is only the sixth president in the history of the organization. Before rising to the top spot, Danner was executive vice president, overseeing NFIB's federal and state public policy and political activities as well as the organization's three 501 (c) 3 operations: the Research Foundation, Small Business Legal Center and the Young Entrepreneur Foundation. He came to NFIB in 1993 as vice president of the NFIB Education Foundation (now known as the Young Entrepreneur Foundation) and was named vice president of federal public policy in 1995. Previously, he was chief of staff to the U.S. Secretary of Commerce. Danner also worked in the White House Office of Public Liaison, where he was special assistant to the president and deputy director of the department. Before joining the White House staff, Danner was an executive with Armco Inc., a steel manufacturing company. He held leadership positions in sales and marketing, as well as state and federal lobbying on issues such as energy, environment, taxes and trade. He also served four years as vice president of federal relations at George Mason University. A native of Middletown, Ohio, Danner holds an MBA degree from Xavier University and an electrical engineering degree from Purdue University.
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One Response to iTax: US Tax Code Rotten to the Core

  1. tomdryan says:

    The Neutral Tax permanently reforms the federal tax code and it lets the states decide what form that reform will take, be it a flat tax, FairTax, or something else. See:

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