The Financial Services Roundtable (FSR) voiced its support for discussions by the Senate Finance Committee to reform the tax code.
“FSR strongly supports the committee’s overall goal of enacting a simpler, fairer, and a more efficient tax code that significantly reduces tax rates on individuals, businesses, and investment income,” FSR CEO Tim Pawlenty wrote in a letter to Senate Finance Committee Chair Orrin Hatch (R-UT). “Such reforms will create jobs, increase wages, bolster economic growth, and make America a more attractive place to invest.”
However, FSR asked the committee not to impose industry-specific taxes that single out any sector for adverse treatment.
“FSR recommends the committee give favorable consideration to tax policies that increase consumers’ access to affordable retirement and insurance products, promote capital formation, facilitate consumer and business lending, and allow financial institutions to facilitate private-sector investments,” Pawlenty wrote.
Further, FSR supports lower individual marginal rates to provide relief to taxpayers and encourage saving and investment. In addition, FSR supports protecting the mortgage interest deduction, a long-standing incentive that millions of middle-class taxpayers rely on to encourage homeownership.
Also, FSR backs rate reductions on income earned by businesses urges caution regarding possible limitations on the deductibility of business interest. FSR believes the current tax code’s system of international taxation is another significant drawback for American businesses serving consumers around the world. It supports a territorial tax system under which U.S. businesses would generally be taxed only on their domestic earnings.