Chairman Himes, Ranking Member Steil, and Members of the Committee:
Thank you for the opportunity to discuss the critical topic of tax fairness. My testimony today will focus primarily on evaluating tax fairness, in particular how aspects of the federal tax system affect income and wealth inequality. The first part of my testimony will focus on four major ways in which the existing tax system is unfair and perpetuates economic disparities:
1. The federal tax code preferences income from wealth
2. The benefit of federal tax expenditures are skewed toward those with higher incomes
3. The global “race to the bottom” on corporate taxes and corporate tax avoidance through profit shifting have undermined the U.S. corporate tax base
4. Inequitable and inadequate tax enforcement undermines tax fairness
The above excerpt was originally published in the U.S. House Select Committee on Economic Disparity and Fairness in Growth. Click here to view the full testimony.
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Acting Vice President, Economy