Senior Director of Federal Tax Policy
Two key policymakers on tax issues, Senator Chuck Schumer (D-NY) and Representative Chris Van Hollen (D-MD), made clear in weekend interviews that they understand the “tax reform trap” — the danger of locking in a much lower top tax rate as the first step in a process whose main goal must be to reduce deficits. Such a move would be hugely expensive and regressive.
He added: “There are things we should do to simplify the tax code, but we should not arbitrarily pick rate reductions . . . and then say we’re going to try and find a way to try to pay for this.”
It’s encouraging to see that more and more policymakers understand that the goal of tax reform shouldn’t be yet another tax cut for people with the highest incomes.