New CRFB Paper Shows Tax Reform Can Reduce Rates and Deficits
Today, CRFB released a paper on individual income tax reform, showing how comprehensive reforms could lower both deficits and tax rates. The paper explains why a recent Joint Committee on Taxation experiment showing a top rate of 38 percent is not comparable to the Simpson-Bowles plan, the Domenici-Rivlin plan, or any other tax reform plan out there.
This paper comes on the heels of a previous piece we wrote showing how policymakers could broaden the tax base in order to lower the corporate tax rate or raise revenue. Along with that paper we included an interactive tax reform calculator that allows users to design their own tax plan.
Individual and corporate tax reform will both require making hard choices and dealing with a number of trade-offs. Hopefully, our recent papers on tax reform will serve to enlighten the discussion.
Click here to read the full paper on individual tax reform.