By Congressman Tom Cole
Today, April 15th, is Tax Day – the day that individual income tax returns are due to be submitted to the federal government. As the American people and I file our tax returns today, I am reflecting on the American economy and the importance of pro-growth tax policy in our nation.
Long ago, the United States of America became known as the economic powerhouse of the globe – having the largest economy in the world. Since then, we have remained a global leader in business and innovation. However, our nation is now locked in an increasingly intense economic rivalry with China. In fact, put together, the United States and China make up about 40 percent of global output.
Now, as this rivalry continues to intensify, it is important to note that the U.S. economy does beat out China’s by dollar value. Yet, China dominates the supply chains for necessities like solar panels, electronics, cars, steel, plastic, batteries, and other everyday goods. So, in order to remain as the economic leader of the world, it is important to ensure that our domestic tax code fosters a favorable economic environment that encourages American innovation, which will, in turn, give us a stronger competitive edge against Communist China.
This is why, in 2017, I supported historic, pro-growth tax reform legislation that helped our economy boom and allowed Americans to keep more of their hard-earned money – the Tax Cuts and Jobs Act. In fact, according to the Tax Foundation, in Oklahoma alone, this bill helped to create more than 3,870 jobs and raised the median household income by over $560.
In addition to promoting individual economic growth, I am a strong believer in maintaining a competitive corporate tax code in order to incentivize businesses to set up and maintain operations in America, rather than moving abroad. The Tax Cuts and Jobs Act did just that by reducing the corporate tax rate, and, in turn, allowing American businesses to flourish within our borders, instead of within China’s.
Now, I also want to emphasize that a competitive corporate tax code does not just benefit large American corporations.
As an Oklahoman, I know the importance of small businesses back at home. In fact, small businesses employ more than half of Oklahomans and are very vital to our state’s economy. Rest assured – the Tax Cuts and Jobs Act’s reduction of the corporate tax rate benefits them too, as it allows them to keep more of their earnings, and, therefore, expand operations and employ more workers.
Lastly, I believe increasing the child tax credit is imperative. This, along with many other reasons, is why I was proud to support the bipartisan Tax Relief for American Families and Workers Act earlier this year. This bill builds on the successful Tax Cuts and Jobs Act by providing $20 billion in enhancements for the child tax credit, as well as $200 billion in tax incentives for job creators and American workers.
At the end of the day, the U.S. tax code should be written to benefit the American economy, families, workers, and small businesses, not hurt them. However, in recent years, it has not felt this way, as Americans are being crushed by high interest rates, skyrocketing inflation, and lower real wages. This is unacceptable. As we come up on the expiration of the Tax Cuts and Jobs Act in 2025, it is imperative that Congress and the Administration work together to sign legislation, like the Tax Relief for American Families and Workers Act, into law. We must give our economy a much-needed boost, expand growth and opportunity, increase America’s competitive edge, and do everything we can to remain the economic powerhouse of the world.
