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Senate Finance Committee hashes out conflicts in tax reform

Photo by Ben Nuelle

Senator Chuck Grassley hopes the Senate Finance Committee will agree on a tax reform bill in the coming weeks.

The Senate Finance Committee continues to work on tax reform.

Grassley says there are two questions that need to be asked.

“If it is the absence of conflict and strong emotions on members of the Senate Finance Committee, it’s going smoothly. But, it is difficult to put together a package that reduces marginal tax rates from seven down to three with an emphasis on the middle-income tax cuts and reducing the corporate rate to 20 is not easy to do,” Grassley says.

He says there’s not a lot of conflict but the committee is far from reaching an agreement.

“We’ve screwed this tax code up so bad over the last 30 years. It is so complicated. It hurts economic growth. We must reduce taxes and make it similar. I will vote for tax reform,” Grassley says.

Democrat aides on the Senate Finance Committee say history and well-established economic research has shown that cutting corporate taxes overwhelmingly benefits wealthy shareholders, not working families.

They continued to say the consensus of mainstream economists is that at least three-quarters of corporate taxes are paid for by wealthy shareholders.

More than a third of the benefits of corporate tax cuts go directly to the top 1 percent.

Aides argue corporate profits are at historic highs and worker productivity has more than tripled since the 1970s.