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Tax reform done right will promote economic growth, increase fairness and simplicity, and improve the nation’s fiscal outlook.
The budgetary and economic effects of proposed tax legislation are a critical element of the debate.
Reform that eliminates virtually all tax expenditures allows for rates to be lowered significantly.
The paper puts real numbers behind different scenarios for a structure for tax reform: eliminating income tax expenditures to enable lower tax rates.
By making gradual changes to federal spending and revenue, lawmakers can not only stabilize our fiscal outlook, but provide long-run economic benefits for American families (in terms of real GNP growth) without inflicting undue damage on the U.S. economy in the near term.
On our current path, CBO projects that deficits will reach $1.0 trillion by 2022 and total $10.1 trillion over the next ten years.
The legislation is fiscally irresponsible and will add significantly to America's national debt.
While there is disagreement on specific remedies, there is broad consensus that our current tax code is broken.
Tax expenditures are often "spending in disguise" because they are used by Congress to direct resources to specific constituencies and priorities — much like spending programs.