After their protracted failure to repeal Obamacare, congressional Republicans have indicated that taxes will be next on their agenda. It’s a misnomer to call their plans “tax reform,” though, because they have proposed little more than the same deep cuts for corporations and wealthy individuals that they’ve always wanted.
Real reform would honestly confront the fact that in the next decade we will need roughly $4.5 trillion more revenue than currently projected to meet our existing commitments without increasing the federal debt as a share of the economy. Even more would be needed if the government were to make greater investments to lift productivity and living standards through education, infrastructure and scientific research. Real reform would do this by diversifying methods of taxation while targeting individuals and sectors best able to pay.
While the wages of most Americans have stagnated for years, incomes of the wealthiest have soared. So it would make sense to increase the top rates on them and eliminate a break on income from investments.
