ANNAPOLIS, Md. — U.S. Senator Ben Cardin today discussed his recently introduced tax reform package, which centers on a progressive consumption tax, with leaders of the Maryland business community. While speaking at the Maryland Chamber of Commerce with representatives from a wide cross-section of business interests, including private companies, utilities, academic institutions and healthcare providers, Senator Cardin explained the details of his proposal, which would represent a comprehensive overhaul of America’s outdated system of taxation.
“My tax reform legislation would eliminate income tax liability for most Americans and would reduce the corporate income tax rate to one of the lowest among industrialized nations,” said Senator Cardin, a member of the Senate Finance Committee. “Rather than taxing income, my progressive consumption tax proposal generates reasonable revenue by taxing the purchase of goods and services. It encourages savings and is designed to be at least as progressive as today’s tax system. Low- and middle-income families would be protected from unfair consumption taxation through a rebate, and important benefits would be retained in a much simpler income tax code.”
Cardin introduced his bill, S. 3005, the Progressive Consumption Tax Act, as the 113th Congress drew to a close in order to provide an opening for discussion and a first opportunity to review legislative language for this type of comprehensive tax reform. Although goods and services or consumption taxes are already imposed by at least 150 countries around the world, the PCTA’s reforms would be new to the U.S. tax code.
“Our tax code should be fair for families and employers. It should help make Maryland-based businesses more competitive and our nation’s economy stronger. And it should provide a way to responsibly and reliably collect reasonable revenues. Our current, 1980s-style tax code simply cannot accomplish these goals,” said Senator Cardin, the Ranking Member of the Senate Small Business and Entrepreneurship Committee. “Maryland’s business community has a depth of perspective found in few other places, and today’s exchange helped advance my thinking on issues ranging from health care to immigration reform.
“Credible tax reform is critical to America’s economic competitiveness,” Senator Cardin added. “The Progressive Consumption Tax Act represents one clear path toward this goal.”