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Congressman Devin Nunes (CA-22), a member of the Ways and Means Committee, introduced a bill in the House of Representatives today that would overhaul the system for taxing businesses. 

Supported by twenty-six cosponsors, the American Business Competitiveness Act (ABC Act) would drastically simplify the business tax code by eliminating the income tax on businesses and replacing it with a cash flow tax. The bill implements four main provisions:

•  Allowing for 100 percent, same-year expensing for business investments.

•  Setting a maximum business tax rate of 25 percent.

•  Eliminating all loopholes and special deals on business taxes.

•  Switching to a territorial international system.

“These simple rules will revolutionize the system for taxing businesses,” Rep. Nunes said. “The expensing provision and the low rates will create a huge incentive for businesses to invest money to expand their operations. Meanwhile, by treating all businesses the same regardless of their size or how they’re organized, we’ll create a level playing field for startups and small businesses to compete with bigger firms. Additionally, we can expect huge sums of money parked abroad to flow back into the United States thanks to the switch to a territorial system. These factors combined will essentially turn the United States into a giant tax haven, jolting the economy in a way we’ve never seen before.”

For more information on the ABC Act (H.R. 4377), click here. 

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