A Bipartisan Tax Reform?By Reuven S. Avi-YonahIf one listens to what Democratic and Republicancandidates for president are saying on the cam-paign trail, it would appear that the chances for taxreform in 2017 and beyond are minimal. A biparti-san approach is essential for tax reform to passbecause even if there are majorities from the presi-dent’s party in both houses, major tax reform wouldnot likely get through the Senate without 60 votes.But the parties seem very far apart on tax reform.Democrats are focused on using the tax system toreduce inequality and are determined to raise thetax rates at the top of the income distribution.Republicans would like to cut rates for both indi-viduals and businesses.But if one pays close attention, the potential for abipartisan deal exists, regardless of who occupiesthe White House in 2017. Some Republicans agreewith Democrats, who are primarily focused onindividual taxes, that taxes should be raised for thewealthy in some ways (such as by closing thecarried interest loophole, a position supported byboth Donald Trump and Sen. Ted Cruz, R-Texas).The Republicans focus primarily on business taxreform, but some parts of their plans could gainsupport from Democrats (such as limiting the de-ductibility of interest to corporations, which bothCruz and Trump support).
Avi-Yonah, Reuven S. "A Bipartisan Tax Reform?" Tax Notes 151, no. 4 (2016): 505-8.
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