US Economists Endorse Jobs Creation Act

by Glen Shapiro, LawAndTax-News.com, New York

14 October 2003

In a letter to the chairman of the House Ways and Means Committee, Congressman Bill Thomas, 49 leading US economists praised reforms contained within Thomas' American Jobs Creation Act (HR 2896).

The signatories, who included representatives from think-tanks such as the American Enterprise Institute, The Heritage Foundation, and The Cato Institute, as well as from various universities throughout the country, explained that:

"We are writing to commend you for seeking to reform the tax treatment of international business income. Your proposed legislation, HR 2896, the “American Jobs Creation Act of 2003,” takes important, fundamental steps towards a territorial, consumption-base tax system. This will improve the competitiveness of the US tax code and help create a level playing field for US-based companies. These changes will allow US firms to expand both domestically and internationally and will increase US employment."

The letter continued:

"In addition, we would like to recognize important provisions in your bill that lower the cost of capital, encourage investment and make another step forward towards a neutral, pro-growth tax code. Specifically, reducing the depreciation lives for equipment is a commendable step forward in the quest for a consumption-based tax system that allows investment to be immediately expensed."

The economists concluded by expressing disappointment that the World Trade Organization (WTO) and the European Union "are attempting to dictate US tax law", but observed that: "We believe that enacting HR 2896 will result in a tax code that better promotes US business both within the US and abroad."

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