Vice President Pence's visit to Denver last Thursday coincided with his op-ed, published in the Denver Post. The Vice President outlined the administration’s goal to give working families a real tax cut, to make the tax code simple and fair for all, and to make American businesses competitive on the global stage.

U.S. House of Representatives passed the Senate budget last week, paving the way for tax reform. While the passage of the budget was a significant step forward in advancing President Trump’s top legislative priority, there are some clear warning signs for businesses anxious to see meaningful tax reform.

Our tax system has a way of creating winner and losers. As the “Big Six” unveil the details of the tax plan this week, the potential changes to various deductions that favor certain industries will bring out passionate and intense lobbying from stakeholders. As lawmakers look to simplify an inefficient and burdensome tax code, many of the exemptions and popular deductions are up for debate. So far, most of the debate has centered on state and local tax deduction (SALT), elimination of the alternative minimum tax (AMT), and the estate tax.

If you are a Twitter follower, you may have caught the recent 401(K) tweet from President Trump over concerns that changes to retirement plans could suppress savings contributions. This highlights the challenge facing Republicans who understand the importance of tax reform, not only for working families and companies, but their own political future. The Senate’s budget, adopted by the House, enacted only $1 billion in spending cuts, while allowing $1.5 trillion to be added to the national debt. Tax cuts do not pay for themselves. While we expect significant growth, increased hiring and wages by passing meaningful tax reform, we know the battle over pay-fors will only mount.

As President of the Colorado Business Roundtable, we fully support this once-in-a-generation reform of our outdated, cumbersome, uncompetitive tax code. Colorado workers should keep as much of their hard earned wages as possible. Lowering the individual rates and providing true middle class tax relief is central to this administration’s plan. Colorado businesses deserve a tax rate that provides an opportunity to compete on a level playing field. But tax reform must be done in a fiscally responsible manner. Reforms need to benefit America’s working middle class and create a fair and modern tax code.

While the passage of the budget and reconciliation instructions allows Republicans to pass tax reform without a single Democratic vote, that doesn’t necessarily mean that is the best approach. The principles of tax reform put forth by this administration should be welcomed by all- reform that is pro-growth, pro-business, and will benefit Colorado’s workers. Republicans should welcome and actively pursue bipartisan support for tax reform. Democrats would be well-suited to use their voices to put forth ideas that create wins for labor and working families. Historic tax reform will feel even better, and go a long way to reasserting congressional leadership and trust, with a bipartisan solution.

Jeff Wasden, President
Colorado Business Roundtable
Colorado for Tax Reform Chair