Our tax code is overly complex and too often leads to unfair results for middle-class families and communities of color. The U.S. tax code is long overdue for comprehensive reform, and as a member of the tax-writing Ways and Means Committee, I am pushing to bring our nation’s tax policies into the 21st Century.
Comprehensive tax reform is about creating policies that are fair for all Americans and give businesses the ability to plan for the future. Tax policy should be about growing the middle class and providing economic opportunity. Through a modernized tax code, we can also invest resources here in America, encouraging job creation and innovation.
Current U.S. tax law undermines the competitiveness of domestic businesses and is out of date with the way the world works today. Congress should focus on simplifying our tax code by eliminating inefficient and unfair tax breaks and subsidies that don’t make sense in today’s global economy. Any time our federal government offers a tax break or subsidy, we should consider it as an expense and evaluate whether we are getting an adequate return on investment. Tax provisions that are no longer worthwhile should be eliminated.
That’s why I am championing efforts that provide tax relief for the middle-class including the enhanced Child Tax Credit. The credit is our largest investment in children but still leaves behind one-third of all children who are in families who earn too little to get the full credit. Those left behind include one-half of Black and Hispanic children. My proposal is estimated to lift 4 million children out of poverty and cut deep poverty among children in half by providing up to $3,000 per child (or $3,600 per young child under 6) to families and provide the credit in monthly payments.
I am also the lead sponsor of the Affordable Housing Credit Improvement Act, which would create approximately 550,000 new affordable housing units nationwide in the next decade and address the growing housing crisis. Part of this bill was included in Congress’ COVID-19 relief efforts, but we need to do more to expand affordable housing using the proven success of this credit.
During the pandemic, I fought to ensure stability for workers and businesses through an enhanced Employee Retention Tax Credit. The enhanced tax credit was signed into law in December 2020 and provides employers up to $14,000 per employee to cover workers’ salaries and benefits through June 2021.
We need bipartisan solutions that simplify our tax code and help the millions of workers and families across America who are just looking for a fair chance, a system they can navigate, and an end to special interest tax breaks. I will continue working with both sides of the aisle to achieve these goals.