Support for Pro-Growth Tax Reform

On behalf of the 10,000 members of the Asian American Hotel Owners Association (AAHOA), who own 20,000 hotels across the United States, we strongly support federal and state legislation that lowers tax burdens and simplifies tax compliance, which in turn will grow our economy and create jobs.

Issue:  U.S. Tax Code Is Unduly Burdensome and Inhibits Economic Growth

The United States Tax Code creates undue burdens with onerous compliance requirements and policy which inhibits economic growth.  A long-term economic recovery for the United States will only occur with a vibrant small business environment which rewards risk-taking, investment, and entrepreneurship.

Policy Implications of a Simplified U.S. Tax Code:

A simplified U.S. Tax Code that encourages capital investment while also eliminating the burdensome costs of compliance will undoubtedly lead to a growing economy with positive job growth.  Additional measures which protect the earnings of U.S. companies and small business owners filing as individuals will lead to greater domestic reinvestment into U.S. products, machinery, and human capital.

In support of pro-growth tax reform, AAHOA urges Congress to pass the following legislation:

  • Bipartisan Tax Fairness and Simplification Act of 2011 [S. 727] – This Act is designed to simplify our tax system by reducing the number of income tax brackets from six to three, eliminating the Alternative Minimum Tax (AMT), and permanently allowing small businesses to expense all equipment and inventory costs in a single year.  A recent Heritage Foundation study shows that enactment of this legislation will create 2.3 million jobs per year while cutting the deficit by $61 billion per year.

  • Death Tax Repeal Permanency Act [H.R. 1259] – A permanent repeal of the death tax will bring an end to one of the most damaging tax policies found in the current Code.  According to former Congressional Budget Office Director Douglas Holtz-Eakin, repealing the estate tax would create over 1.3 million jobs.  A report from Duquesne University shows that 170,000 total households will be susceptible to estate taxes in 2011.  Most damaging is the near-term dramatic increase in the estate tax rate. The estate tax is scheduled to go from 0% in 2010 to 55% on 2013 without legislative action.