Policymakers Should Reject Trump, Republican Tax Agendas That Would Double Down on Failures of 2017 Tax Law

Following a campaign in which President-elect Trump promised to improve the economic circumstances of working-class people across races, it’s jarring that the incoming Trump Administration and Republican majority seem intent on rushing through an extension of the 2017 Trump tax law. That law was skewed to the wealthy, expensive, and failed to deliver on its promises. Instead of doubling down on this costly failure, policymakers should shift course and make better, more equitable choices. They should require wealthy households and corporations to pay their fair share. They should make the tax code work better for families with more modest incomes and people of color. They should support key investments and strengthen our fiscal outlook.

Here’s how:

End tax cuts for high-income people on schedule. Ending the 2017 law’s tax cuts for high-income households with incomes above $400,000 — the tax rate cuts, special deductions, and estate tax cuts on massive inheritances — would avoid fully 41 percent of the $3.9 trillion cost of extending the 2017 law over ten years (2026-2035).

The 2017 tax law benefited high-income households far more than households with low or moderate incomes. Ending the expiring cuts for high-income households is an essential step in shifting away from the regressive, costly tax cuts of recent decades and toward a more equitable tax system that raises revenue sufficient to meet the nation’s needs.