The existing U.S. business tax system penalizes savings and investment. One proposed solution is basic tax reform which, according to some economists, would promote more U.S. savings, investment, and economic growth. AISI recognizes that recent economic studies show that fundamental tax reform could increase national saving, reduce the cost of capital, and lead to more capital formation and a higher GDP growth rate. Such a tax could promote U.S. exports of steel and steel-containing products, while leveling the playing field with imports. Concerns of steel.
Steel also has a number of concerns, questions, and issues related to basic tax reform.
A single transition rule that could be useful would be to permit taxpayers to run the new and old systems side by side for several years. Whatever the solution, there must be fair transition rules to ensure that U.S. firms are not disadvantaged. Financial statement concerns. The loss of such future deductions and credits could be devastating on some companies' financial statements. Thus, in any new tax system, these tax assets should be preserved.