The goal of the 2025 tax extensions should be to keep tax rates low and meet calls for additional pro-growth tax cuts, such as a lower corporate tax rate and permanent investment expensing. To do this within the constraints of the reconciliation budget process, Congress will also need to cut spending and find additional tax offsets. The Tax Cuts and Jobs Act of 2017 (TCJA) increased revenue by approximately $4 trillion through base broadening and other one-time changes. These changes allowed Congress to cut taxes by $5.5 trillion, for a net tax cut of about $1.5 trillion over 10 years. This model of pairing base broadeners with tax cuts should be a road map for 2025. By offsetting more of the 2025 package, Congress can make a larger share of the tax cuts permanent, improving on one of the TCJA's biggest weaknesses. The following are 12 revenue-raising reforms that would improve the tax base, close loopholes, and cut special-interest subsidies.
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