Opening Statement of Ranking Member Sander Levin

The announcement for this hearing stated that, "Congress and the President need to work together to achieve a tax system that is fair, simple, and efficient… While some seem to prefer a "business-only' approach to tax reform, we owe it to the hard-working taxpayers we represent to ensure that they are not left out of this discussion." I very much agree.

The kind of tax reform proposed in the Republican budget would reduce taxes for the very highest earners, and increase the burden on working families. These reductions for the highest earners come on top of the nearly $700 billion in additional tax cuts the Republican budget assumes for taxpayers with income above $250,000, almost 80% of which go to people making more than $1 million.

As we consider complexity in the individual tax system, we need to be sensitive to the reasons provisions were enacted in the first place. Our goal should be to strengthen provisions that help working families send their kids to college, save for retirement, or make ends meet.

The Republican budget indicates that the individual and corporate rates will be reduced from 35% to 25% but leaves it up to the Ways and Means Committee to fill in the details. To do so in a deficit-neutral manner, some estimates are that we would have to eliminate more than $2.9 trillion worth of tax expenditures over the next decade.

The Child Credit, Earned Income Tax Credit, American Opportunity Tax Credit, and retirement savings accounts are primarily middle and lower income provisions.

The need for simplification cannot be used as rationale for irrational inequity or for undoing progress that helped foster the middle class.

I look forward to continuing this conversation and hearing today's testimony.

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