Republicans have an answer to liberals who claim they are ignoring the issue of growing inequality in income. House Budget Committee Chairman Paul Ryan, R-Wis., released a 17-page report on the subject Thursday, The Hill
“The question for policymakers is not how best to redistribute a shrinking economic pie. The focus ought to be on increasing living standards, expanding economic opportunity, and promoting upward mobility for all,” the report states.
Ryan maintains that eliminating tax deductions and lowering the top marginal rate would make the tax code more progressive, as evidenced by the 1986 tax reform.
“Income at the top end of the distribution that was formerly parked in tax shelters would go from being taxed at zero percent to being taxed at the top marginal rate,” the report notes.
But raising the top rate of 35 percent would have a negative effect on the poor, the paper argues.
“The result of such an agenda would be much slower economic growth and lower incomes for all.”
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