Unrig & Invest: Fighting For A FAIRER Tax Code

Public Citizen is working to unrig the tax code to make it fairer for everyday Americans. We also believe we must increase government revenues in order to reinvest in communities.

Public Citizen believes we need a tax code that prioritizes having the wealthy and corporations pay their fair share and that provides adequate revenues to support our government and the social safety net. In addition to repealing the disastrous 2017 and 2025 tax giveaway bills, it’s far past time to close loopholes and make corporations and Wall Street pay their fair share. And, the Internal Revenue Service must work for We the People and be better empowered to enforce the law against tax cheats.

1. Rolling-Back the Tax Giveaways

As a first step, we must repeal the policies enacted through the 2017 and 2025 tax cut packages that showered corporations and the very wealthy with lavish handouts like slashing the corporate tax rate, providing further incentives for offshoring, increasing the estate tax threshold so fewer multimillionaire heirs pay taxes, cutting the top tax rate for individuals, providing a deduction for millionaire hedge fund owners, and other giveaways to corporations and the wealthy. A fairer tax code for everyone means rolling-back these harmful tax changes and ensuring that Congress crafts a more progressive tax code that works for everyone, not just the ultra-rich and powerful corporations. 

2. Ensuring Corporations & Wall Street Pay Their Fair Share

In addition to rolling back the 2017 and 2025 tax giveaways, corporations and the wealthy should pull more of their weight when it comes to taxes, such as by increasing the tax rate for corporations beyond the pre-2017 rate of 35% and closing loopholes that benefit investors and high-paid CEOs over average Americans. We should also strengthen the estate tax. Additionally, we must stop multinational corporations from gaming the tax system, such as by equalizing the domestic and international tax rates and requiring disclosure of country-by-country tax information.

3. New Revenues = New Investments

Our country has an unending list of needed investments around health, childcare, access to higher education, assistance for seniors, addressing climate change, etc. By asking Wall Street and very wealthy to pay more of their fair share, we will have more money to give a hand up to those who need it most. We can do this adding a surtax on the incomes of the richest among us, or even by taxing amassed wealth. And, revenues from other new taxes like a Wall Street sales tax (financial transaction tax) also could be reinvested in our communities.

4. An IRS for the People

The investments in the IRS made through the Inflation Reduction Act were a great start, but much of that money has been rescinded and we need to protect the remaining money in the face of attacks. And, while unfortunately the successful Direct File program has been suspended by the Trump II administration, we must continue to tell the story about the benefits the Direct File program provided to tax filers and the ongoing need for the IRS to provide a free online tax filing option. Additionally, the IRS must focus on closing the gap between what is owed to the U.S. in taxes and what is paid, especially by ensuring that audits and other enforcement is concentrated more on big-money taxpayers and corporations in order to maximize the agency’s bang for the buck. Moreover, nonprofit organizations need bright line rules on political activity and adequate enforcement of the tax laws on the books and to ensure enforcement of the Johnson Amendment that prohibits political campaigning by tax-exempt charities like churches, which will better protect and encourage a healthy democracy.