America’s tax code is horribly out of date.
Thankfully, Congress and the president have outlined plans for updating the tax code and cutting Americans’ taxes.
The public strongly supports this agenda. A recent study by The Heritage Foundation’s American Perceptions Initiative into American attitudes toward tax reform found that almost two-thirds (64 percent) of Americans say that the federal tax system needs major changes and reform.
In addition, nine in 10 Americans (91 percent) agree that the system needs at least some changes.
The prospect of tax cuts have some worried that they would lead to reductions in revenue, and have called for the tax cuts to be offset by new taxes or tax increases in other areas.
However, tax cuts should not be paid for by tax increases elsewhere, and the American people agree.
Sixty-eight percent of registered voters in the survey said that potential lower revenue from tax cuts should lead to lower government spending, with overall spending cuts or entitlement reform to control the financial burden of federal spending.
Tax cuts do not need to be paid for. Only government spending, which drives deficits and debt, needs to be paid for.
Tax reform proposals aside, the nation is on an unsustainable fiscal path that requires spending reforms regardless of the ultimate tax changes.
If tax reform is to be lasting and sustainable, Congress must cut spending. The U.S. has been overspending and overtaxing for far too long.
Though tax reform need not necessarily be tied to spending cuts, pursuing spending reforms with tax cuts can strengthen the permanency of tax reform, help place the federal budget on a sustainable path, and bring about additional economic growth.