Problem Solvers Caucus Calls for Legislation that Tackles Tax Reform and Infrastructure Together
Today, the two co-chairs of the Problem Solvers Caucus, Reps. Josh Gottheimer (D-NJ) and Tom Reed (R-NY), called for Congress to tackle comprehensive tax reform and infrastructure investment together . The bipartisan support of the caucus shows that there are members of Congress ready to come together to put country over party.
Why, though, does the Caucus want to tackle tax reform and infrastructure at the same time?
Because the success of the two proposals are intricately tied together.
Lower tax rates, specifically a lower corporate tax rate, frees up more capital for businesses to invest. Moreover, it encourages corporations to build their businesses here in America, rather than going overseas. But businesses also recognize that poor infrastructure is bad for their bottom line. In fact, experts estimate that the US loses nearly 1% of GDP every year, nearly $180 billion dollars in 2015 alone, because of America’s crumbling infrastructure. As long as our roads, bridges and airports are outdated, businesses will lose money on investments in the American economy. But by investing in our infrastructure, Congress and the president can ensure that Americans feel the full economic effects of comprehensive tax reform.
Legislators have a lot of work to do to pass the kind of tax reform and infrastructure investment bill America needs. But the Problem Solvers Caucus has provided a rare opening for bipartisan cooperation on these two critical issues. It’s time for the White House and leaders in Congress to seize the opportunity.