Times have changed. That doesn’t mean the Gipper’s basic disposition toward lower and less onerous taxes needs to be junked. It means that today’s Republicans (and Democrats!) need to grapple with four differences between our time and his.
Tax relief should be targeted at middle- and working-class Americans — without blowing up the deficit. AEI’s James Capretta and Ramesh Ponnuru offer some ideas for how to pay for this sort of tax reform.
An expanded tax credit for children should be part of any larger tax reform that Congress enacts, so that the reform is both pro-growth and pro-family.
Alex Brill argues that the current individual tax system is complex, burdensome, and riddled with deductions, exclusions and credits. Broadening the tax base would help simplify the tax system and serve as an effective way to reduce horizontal inequity in the tax code. Transitioning from the tax code we have today to a fairer, simpler, and more pro-growth tax system is itself a complex challenge that will require lawmakers to strike a careful balance.
Resident Fellow Alex Brill argues that a more neutral tax code will facilitate a more productive allocation of resources and can contribute to a pro-growth economic environment. In addition, he provides five points to consider when reforming the current individual tax code.
Both the House GOP and President Trump have proposed increasing the standard deduction. Using the open source Tax-Calculator, I present results describing the effects if increasing the standard deduction by 25%, 50%, 100%, or 200%.
I present the results of two modifications to current law: (1) repeal all itemized deductions (IDs) except mortgage interest deduction and charitable deduction and double standard deduction (SD), or (2) repeal these deductions, double standard deduction, and repeal the personal exemption (PE).
Under current law, a taxpayer can claim a Child Tax Credit (CTC) of up to $1,000 for each qualified child under 17 years of age.
Resident Fellow Marc Thiessen, discusses President Trump meeting with senators on tax reform. He explains his fascination with Trump going after Democratic votes.