Austin, TX—The Texas Public Policy Foundation released the following statement today after the U.S. House of Representatives unveiled details of its long-awaited tax reform proposal:
“For hardworking Americans and for small business owners, the tax reform proposal put forth today by the House of Representatives has much to like, but also room for improvement,” said Dr. Vance Ginn, director of the Center for Economic Prosperity. “Lowering tax rates for many working families and corporations and simplifying the tax code, including eliminating most exemptions, would provide much-needed relief.”
But today’s proposal should be a starting point, not the high-water mark of the discussion.
“Congress should truly simplify the tax code by keeping the elimination of the deductions outlined in today’s proposal and fully eliminating costly deductions like SALT that improperly distort federalism by having low-tax states subsidize high-tax states—all while moving away from the flawed mindset of revenue neutrality,” Ginn said. “Any tax reform effort should take the opportunity to lessen the federal government’s burden on our daily lives. Specifically, Congress should practice budget neutrality, whereby permanent cuts in taxes should be met with cuts in spending, creating an economic environment more conducive to economic prosperity.”
But Congress must do more than simply cut taxes, said Drew White, senior policy analyst.
“If tax reform merely turns into a temporary tax cut with new and expanded tax credits and no spending reductions, it will only contribute to our growing $20 trillion debt and fail to provide the long-term boost America needs to once again compete as the world’s most robust economy,” said White. “Congress should heed the lessons of their stalled healthcare efforts from this year and not allow this opportunity for meaningful and lasting structural reform to be squandered away.”
For more information or to request an interview with Dr. Ginn or Mr. White, please contact Alicia Pierce at firstname.lastname@example.org or 512-472-2700.
Vance Ginn, Ph.D. is an economist and the director of the Center for Economic Prosperity at Texas Public Policy Foundation.
Drew White is a senior federal policy analyst with the Center for Tenth Amendment Action at Texas Public Policy Foundation.
The Texas Public Policy Foundation is a non-profit free-market research institute based in Austin. The Texas Public Policy Foundation aims to advance a societal framework that effectively fosters human flourishing based upon cooperation and mutually beneficial exchange of ideas and speech.
– 30 –