Laying the groundwork for more proposals to reduce or eliminate the growing economic gap between the wealthy and working American families, both the Senate Budget and Finance Committees held hearings on the wealthy’s tax liability. The Budget Committee hearing was held on November 8; the Finance Committee hearing was November 9.
Both committees welcomed witnesses from academia and think tanks. At the Budget Committee, the focus was on the highly partisan issue of whether Congress should continue or reduce funds available to audit tax returns from wealthy individuals and companies. At the Finance Committee, Senators explored legal practices, like gifting, that wealthy individuals use to lower their tax liability.
Prospects: Neither hearing is expected to result in any new legislative proposals, but both further the Democrats’ goal of revisiting tax law in order to “assure that all taxpayers pay their fair share.” The debate over tax increases—both as a matter of policy (fairness) and for revenue (to offset new initiatives and/or to reduce the federal deficit/debt)—is headed towards a quick climb to priority status by next year.
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.