Press Release

Testimony on The Tax Code, High Earners, and Tax Planning: Policy Considerations

In testimony before the Senate Committee on Finance, AAF President Douglas Holtz-Eakin discusses issues related to the tax code, high-income individuals, and tax planning strategies.

His key points:

  • The two most pressing policy problems are the poor pace of economic growth and the unsustainable federal budget outlook; these interact as deficits are a headwind to growth, but faster growth would improve the fiscal outlook.
  • Deficit reduction should be dominated by slowing the growth of mandatory spending, while tax policy should be pro-growth with low taxes on saving, investment, and innovation.
  • Differential taxation of alternative forms of capital income offers the greatest opportunities for tax avoidance and evasion; a pro-growth tax stance reduces risks of these behaviors.

Read the Testimony

Watch the Hearing