Heritage Foundation on Tax Reform



Lower taxes on businesses unleashes higher wages

Case for voting YES on HR1 by Heritage Foundation: (Dec. 19, 2017)The Tax Cuts and Jobs Act is the most sweeping update to the U.S. tax code in more than 30 years. The bill would lower taxes on businesses and individuals and unleash higher wages, more jobs, and untold opportunity through a larger and more dynamic economy. The bill includes many pro-growth features, including a deep reduction in the corporate tax rate, a scaled-back state and local tax deduction, full expensing for five years, and lower individual tax rates.

Case for voting NO on HR1 by Sierra Club: (Nov 16, 2017) House Republicans have passed a deeply regressive tax plan that will result in painful cuts to core domestic programs, to give billionaires and corporate polluters tax cuts while making American families pay the price. This plan balloons the federal deficit by over $1.5 trillion. Cutting taxes for the rich now means cuts to the federal budget and entitlements later.

Source: Heritage Action 2017 voting recommendation on HR1 , Dec 19, 2017

Death Tax is a pernicious double tax

HR1105 would repeal the estate and generation-skipping transfer taxes, as well as cut the top gift tax rate. 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. According to conservative estimates by The Heritage Foundation, 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. The death tax discourages the entrepreneurial spirit by burdening family businesses with untenable choices as they pass from one generation to the next.

Source: Heritage Action 2015-16 voting recommendation on HR1105 , Apr 16, 2015

True tax reform is revenue-neutral by lowering rates

If we are to have any hope of reclaiming economic growth and digging out of the hole we're in, the budget should:
  1. Balance. Achieve balance within 10 years, and stay in balance. Why? Put simply, we can't keep spending more money than we take in.
  2. Reform Taxes. Adopt growth-oriented tax reform capped at the historical level of taxation. Why? Economic growth is the goal. A better economy means people are employed, they are advancing, and they are making more money. That's why the government actually takes in more in taxes when times are good--people make more money and pay more taxes. Tax reform does not mean closing tax preferences ("loopholes") to raise revenue. True tax reform is revenue neutral. Any revenue raised by eliminating tax preferences should be offset by lowering tax rates.
    Source: 2013 campaign website blog.heritage.org, "Morning Bell" , Mar 11, 2013

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    Page last updated: Apr 30, 2021