Mike Quigley on Tax Reform

Fully fund the IRS for staffing and cybersecurity

Rep. Mike Quigley (D-IL) expressed doubts that a continuously shrinking IRS could effectively do its job, especially now that it's received new responsibilities under the tax reform law. "It is hard to imagine why this administration would want to weaken the IRS and give taxpayers less resources right after passing a complex tax bill," Quigley said. He also questioned why the Trump administration would cut cybersecurity enhancement funding nearly in half--down from $47.7 million in 2017 to $25.2 million in 2019 --especially at a time when the IRS stops nearly a million attempted cyber intrusions each day. "The Treasury budget before us would slash various programs that will make us less effective, less efficient and more vulnerable to outside risk," he said.

Raising estate tax to 1990s level means $448B in new revenue.

Heritage Action Summary: This bill would repeal the estate and generation-skipping transfer taxes, as well as cut the top gift tax rate.

Heritage Foundation recommendation to vote YES: (4/16/2015): Collectively, these measures repeal the pernicious double tax known as the "death tax," and result in a tax cut of $269 billion over 10 years. The death tax hurts economic growth and therefore limits the ability of Americans to prosper. Repealing the death tax would generate an average of 18,000 jobs annually and increase the overall net worth of American households by $300 billion a year. The federal government should encourage, not punish, Americans who work and pay taxes their whole lives, save enough to support themselves through retirement, and retain the ability to fulfill the American Dream by passing along a better life to their children.

Secretary of Labor Robert Reich recommendation to vote YES: (robertreich.org 6/4/2015): At a time of historic economic inequality, it should be a no-brainer to raise a tax on inherited wealth for the very rich. Yet there's a move among some members of Congress to abolish it altogether. Today the estate tax reaches only the richest 2/10 of 1%, and applies only to dollars in excess of $10.86 million for married couples or $5.43 million for individuals. That means if a couple leaves to their heirs $10,860,001, they now pay the estate tax on $1. The current estate tax rate is 40%, so that would be 40 cents. Yet according to these members of Congress, that's still too much. Our democracy's Founding Fathers did not want a privileged aristocracy. Yet that's the direction we're going in. The tax on inherited wealth is one of the major bulwarks against it. That tax should be increased and strengthened.

Legislative outcome: Passed by the House 240-179-12; never came to vote in Senate.