Just as Ronald Reagan’s landmark 1986 bipartisan tax reform increased simplicity, fairness and economic efficiency by broadening the tax base and reducing rates, today tax reform has the potential to help American families and the economy. Properly designed, revenue-neutral reforms could help to offset the dramatic increases in inequality that have taken place over a generation, repair a business tax system that globalization has rendered dysfunctional, reduce uncertainty and promote growth.
Unfortunately, what we know regarding the intentions of the president-elect and congressional leadership suggest that they are at risk of pushing through the most misguided set of tax changes in U.S. history. The proposals from the presidential campaign, reiterated last week by President-elect Donald Trump’s choice for treasury secretary, will massively favor the top 1 percent of income earners, threaten explosive growth in federal debt, complicate the tax code and do little if anything to spur growth.
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