The running theme this week is what Senator Chuck Schumer (D-NY) called the “Rumpelstiltskin fairy tale” that the country can increase revenues simply by lowering tax rates:
Sen. Saxby Chambliss (R-GA): On ABC’s This Week, Chambliss said, “Bowles-Simpson said, look, eliminate all these tax credits and tax deductions. You can generate somewhere 1 to 1.2 trillion in additional revenue. You can actually lower tax rates by doing that.And I think at the end of the day, what’s got to happen, George, we’ve got to get this economy going again.
Rep. Tom Cole (R-OK): In a Friday column, House Budget Committee member Cole wrote: “However, raising tax rates is not the only way to increase revenue, nor is it the best way. Speaker Boehner has proposedcomprehensive tax reform to raise revenue and lower rates. Eliminating inefficient loopholes and deductions will generate economic growth while creating a simpler, fairer tax code.”
Rep. Kevin Brady (R-TX): In a Wednesday Tweet, House Ways and Means Committee member Brady opined: “Stronger economic growth from tax reform that lowers rates and closes loopholes will generate higher revenue to bring the deficit down.
Rep. Eric Cantor (R-VA): In a letter to his Republican caucus, the House Majority Leader wrote: “What would be best is a fundamental reform of the tax code that lowers rates, broadens the base, makes America’s businesses competitive again, and reduces the burden imposed by taxes on work and investment.”
Rep. Dave Camp (R-MI): In a Wednesday press release, the House Ways and Means Chairman wrote: “There is a better path forward than simply increasing tax rates, and one in which both sides can claim victory. We can address both our jobs crisis and our debt crisis by focusing on tax reform that strengthens the economy. There isbipartisan support for tax reform that closes loopholes and lowers rates.”
Rep. Tom Price (R-GA): On Fox News Sunday, House Republican Policy Committee Chairman Price, a member of both the Ways and Means and Budget Committees, said “We can increase revenue without increasing the tax rates on anybody in this country.”
The non-partisan Congressional Budget Office says there will be no significant negative impact on the economy should the lower rates on the wealthiest Americans be allowed to expire. And the notion that lowering rates will magically create more revenue is indeed a right-wing pipe dream.