New Report Shows Tax Reform Proposal Reduces Economic Growth, Especially In California

Comments?



From: Christopher Arns [mailto:carns@bizjournals.com]

Sent: Wednesday, July 10, 2013 12:24 PM

To: Scott Hauge

Subject: FW: New Report Shows Tax Reform Proposal Reduces Economic Growth, Especially In California



Hi Scott, what do you think about this report? Would this bill affect your members?



Best regards,

Christopher Arns

Capitol Reporter



Sacramento Business Journal

1400 X Street, Sacramento, CA 95818

(916) 558-7859

www.twitter.com/@carnssacbiz






------ Forwarded Message

From: Russell Grote

Date: Wed, 10 Jul 2013 19:01:53 +0000

To: Christopher Arns

Subject: New Report Shows Tax Reform Proposal Reduces Economic Growth, Especially In California



Hi Christopher,



Tax reform is heating up in Washington D.C. and a proposal being floated by a number of policymakers is to limit interest deductibility, a key component of the tax code for businesses. Today, the BUILD Coalition released a new study that shows California takes a billion dollar hit if interest deductibility is limited to pay for tax reform(see our state-by-state impact analysis here ).



Overall, this Ernst & Young study found that limiting interest deductibility to pay for tax reform reduces economic growth in all industries; yet, it is being considered by Congress, Treasury, and a number of advocates as a way to raise revenue to lower tax rates.



This is a key issue within tax reform and would be interesting to your readers, especially business owners who understand the issue who are monitoring DC’s efforts on reforming our tax code.



Feel free to reach out with any questions.



Russ