Director of Federal Tax Policy
Yesterday’s post in this series explained why the nation’s unsustainable budget deficits must be in the forefront of any tax reform discussions. That means we’ll need to raise enough additional revenue to contribute to a balanced deficit-reduction plan.
Fortunately, taxes are low right now, both historically and compared to other countries:
Moreover, higher taxes are not an inherent barrier to economic growth. CBO has found that tax increases used to reduce budget deficits can improve long-term economic growth and job creation. Claims that reasonable revenue increases will sink the economy largely reflect politics and ideology, not solid analysis — as the experience of the 1990s shows.
In short, the United States needs to raise more revenue and has room to do it.