Taxpayer Watchdog Warns Against Abandoning Sound Tax Principles

As Congress negotiates the critical extension of the provisions of the Tax Cuts and Jobs Act (TCJA), it’s been reported that some have begun to consider raising taxes on the wealthy to provide offsets for other tax-cut and spending priorities. One proposal under consideration would raise the tax rate paid by those earning at least $1 million per year to 40 percent.

Responding to the news, David Williams, President of the Taxpayers Protection Alliance (TPA), gave the following analysis: 

“This is a trial balloon full of hot air that should be shot down immediately. It’s disappointing to see tax increases being considered for inclusion in a bill that’s about lowering Americans’ tax burdens. There is nothing economically sound about adding new wrinkles to the tax code, and there is nothing just about raising taxes on affluent Americans because Congress might want to avoid making painful budget cuts. In any negotiation, there are many ideas thrown around, and TPA hopes that this millionaire tax will be quickly dismissed as a viable possibility in the final legislative package.

“At the end of the day, the federal government’s deficit problem is a spending problem, not a revenue problem. Federal outlays keep growing, pushed ever upwards by an unreformed entitlement state and out-of-control interest payments on the debt. No (plausible) amount of new taxation can solve this problem. Instead, Congress must take a hard look at its spending priorities, including responsible, yet assertive, reform of Social Security and Medicare.

“TPA applauds members of Congress for its hard work to enshrine the principles of the TCJA. This will leave more money in the pockets of hard-working taxpayers, kickstart the operations of American entrepreneurs, and turbocharge economic growth.”