Blankenburg for Congress

Simplify the tax code and overhaul the regulatory system

Summary

The U.S. has one of the most complicated and inefficient tax and regulatory systems in the world, which harms American competitiveness. It also favors large corporations over startups and small businesses, who can’t afford the cost of compliance. Reforming our complex, inefficient, and counterproductive tax and regulatory systems is a key component of rebuilding a great American future.

Key Recommendations

Taxes

Reduce personal tax rates to where they were when President Reagan left office. The top rate should be no higher than 27%, compared to 37% today.

Reduce business tax rates to what President Trump proposed. The top rate should be no higher than 15%, compared to 21% today.

Simplify the 70,000-page tax code by eliminating special interest tax deductions.

Regulations

Require that all major regulations undergo a cost-benefit analysis.

Require that all major regulations be approved by Congress.

Require that new laws include “sunset" provisions and carefully limit rulemaking authority when Congress delegates that power to federal agencies.

Background

The U.S. tax code is 70,000 pages long. It’s one of the most complicated and inefficient tax systems in the world. The cost of tax compliance was estimated to be over $300 billion in 2022. That’s as much as it costs to run General Motors and Ford Motor company combined.

In the 1980’s, President Reagan and Democrat Senator Bill Bradley teamed up to simplify the tax code by lowering rates and eliminating special interest deductions. But over the years the deductions crept back into the system, and tax rates increased.

President Obama’s bi-partisan Deficit Commission also proposed to overhaul the tax system by lowering rates and eliminating deductions. Unfortunately, President Obama ran away from his own commission’s plan like it was the plague and nothing was done.

President Trump managed to pass a much-needed reduction in corporate tax rates, which were the highest in the developed world. But Congress wouldn’t lower the rate to where President Trump wanted it.

We must restart the process of reforming our complex, inefficient, and counterproductive tax code.

Congress has also abrogated their responsibilities by turning over major portions of their legislative duties to unelected bureaucrats in the executive branch. The annual cost of regulatory compliance is estimated to be more than $3 trillion. Congress needs to rein in the unelected bureaucrats in the regulatory agencies and resume their Constitutional responsibility to originate and pass all legislation.