Tax Reform’s Higher Purpose

Progressive tax reform needs to raise enough revenue to honor our current commitments to Medicare, Medicaid, Social Security, and other social insurance programs, as well as to finance expanded public investments and income supports that ensure opportunity for all. Rising inequality and the threat of “secular stagnation” make a solid foundation for the case that this revenue should be raised progressively, as taxing wealthy households with large savings does not drag heavily on growth of aggregate demand. Net tax cuts for high-income households and corporations won’t help our demand problem. A number of specific progressive measures are available that can raise revenue, many of them included in recent years’ editions of the budget proposals forwarded by the Congressional Progressive Caucus (CPC), with some technical assistance from the Economic Policy Institute.
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