Statement from the Peterson Foundation on Tax Reform
NEW YORK — Michael A. Peterson, President and CEO of the Peter G. Peterson Foundation, commented today following the release of a joint statement on tax reform from House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch, and House Ways and Means Committee Chairman Kevin Brady:
“It is essential that fiscal responsibility be a fundamental principle of any tax reform plan considered by Congress. We are currently on pace to add another $7 trillion to the national debt over the next eight years. Implementing tax reforms that are not paid for would only make matters worse, and we simply can’t afford to make our fiscal outlook more unsustainable than it already is.
“For tax reform to be truly ‘pro-growth,’ it must be paid for. Reforming taxes in a way that worsens our fiscal condition is counterproductive because adding to our national debt hurts economic growth. Increasing our deficits harms the economy by raising interest costs, reducing wages and crowding out public and private investments in our future.
“Reforming taxes in a fiscally responsible way will increase confidence and certainty, and improve conditions for growth over the long term.
“Lawmakers should seize the opportunity to enact comprehensive tax reform that makes the system simpler, fairer and more pro-growth, while also improving our fiscal outlook. Changes to the tax code should drive a better economic and fiscal future for the country, and tax reform done right would set America on a stronger economic and fiscal path toward long-term prosperity.”
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