Heritage Action is urging congressional Republicans to abandon the concept of revenue-neutral tax reform, and to instead consider reforms that lead to less revenue for the government.
The group, which is the lobbying arm of the conservative Heritage Foundation, is delivering a “congressional boarding pass” to Republicans this week as they head to their annual retreat in Baltimore, Maryland.
The group warns that Congress and other elements of the federal government have “become detached from the demands of the people,” and outlines policy recommendations in several areas. Among other things, the group says it’s time to use tax reform to shrink the federal government, not keep it at its current record size.
“The current tax system is stifling opportunity for all Americans, not just corporations,” the group says. “Heritage market research finds that tax reform “is the most relevant issue of the conservative agenda.'”
While many Republicans have said they want revenue-neutral tax reform, Heritage Action said it’s time to “ditch neutrality.”
“The beltway orthodoxy — tax reform should be revenue neutral, distributionally neutral, and conform with other liberal constructs — crippled Mitt Romney’s ability to campaign on reform and stifled the most recent congressional effort to draft pro-growth reforms,” it said. “With revenues as a percentage of GDP approaching Clinton-era levels, congressional reform efforts should reflect this emerging consensus on the right.”
Republicans in Baltimore are expected to develop a legislative plan for the year that contrasts with the policy aims of Democrats. House Speaker Paul Ryan has said he wants the GOP to pursue policy changes that show Republicans are ready to retake the White House after eight years of President Obama.
