The Race to Harness the Tax Code: Economists and Advocates Push for Change

The race to overhaul the tax code is heating up as lawmakers and advocates from both sides of the political spectrum are seizing the opportunity presented by the expiring Trump-era tax law. Democratic Rep. Suzan DelBene of Washington emphasized the importance of aligning tax policies with values and goals during a recent discussion on proposed tax law changes.

DelBene, a member of the U.S. House Committee on Ways and Means Subcommittee on Tax Policy, outlined her priorities, which include modernizing the tax code, implementing carbon fees on imported goods to raise revenue, and making the expanded child tax credit permanent. She stressed the need to start from a values-based approach when crafting tax policies.

The 2017 tax law, known as the Tax Cuts and Jobs Act, made significant changes to the tax code, including a permanent cut to the corporate tax rate and temporary measures for individuals and businesses. Some of these temporary measures are set to expire in 2025, prompting discussions on extending and expanding certain provisions.

A bipartisan bill to extend expiring business incentives and expand the child tax credit beyond 2025 passed the U.S. House but has faced opposition in the Senate. Critics of the 2017 law argue that its benefits primarily benefited the highest earners.

Despite differing views on certain aspects of tax policy, there is optimism among advocates for fundamental changes to the tax code in the near future. Lindsay Owens of the Groundwork Collaborative expressed confidence in elected officials making significant changes to the tax code next year.

Stephen Moore, a senior visiting fellow in economics at the conservative Heritage Foundation, praised the 2017 tax law as a success and advocated for making the tax cuts permanent. However, he disagreed with former President Trump’s stance on tariffs, calling them a form of consumption tax.

As the debate over tax policy continues, the focus remains on aligning tax policies with values and goals to ensure a fair and equitable tax system that benefits all Americans.