Fighting for a U.S. federal budget that prioritizes peace, economic security and shared prosperity
Nov. 8, 2013 - Download PDF Version
Q: Why all the talk about corporate taxes?
There’s currently bipartisan agreement that the corporate tax code is ripe for reform.
Q: I’m hearing about tax reform in the news. What exactly is tax reform?
Tax reform generally has three objectives – though not everyone who supports reform supports all three:
Q: But why should I care about tax reform?
Whether it’s natural disaster preparedness, early-childhood education, meals on wheels for seniors, clean water and air, repairs to roads and bridges, or veterans benefits, taxes fund programs on which you and your community rely. Tax reform should ensure that our government raises enough revenue to provide services that, according to opinion polls, citizens overwhelmingly value.
Q: Is tax reform only about corporate taxes?
Currently reformers are focused on corporate taxes. Yet the individual income tax code is also rife with costly and complicated tax breaks, including those that disproportionately benefit the wealthy. Ten major tax breaks which together total more than $750 billion in tax savings in 2013 are tilted heavily in favor of the top income earners; according to the Congressional Budget Office, 17 percent of the benefits from major tax breaks go to the top 1 percent of households. Changes to the individual income tax code could raise substantial revenue and reduce budget deficits, as was the case with the sunset of some of the upper-income Bush-era tax cuts in December 2012.