National Taxpayers Union (NTU) is deeply concerned about the harmful economic effects of a tax-increasing “trigger mechanism” that could be inserted into the Senate’s Tax Cuts and Jobs Act.
NTU President Pete Sepp said this, “by injecting uncertainty into the tax code, a trigger mechanism would certainly stymie economic growth, thereby resulting in a likely tax increase. This is a seriously misguided approach that will ultimately undermine pro-growth tax reform legislation. We have worked alongside policymakers for decades to preserve the nation’s fiscal health, and applaud efforts to decrease deficits by controlling spending. But expanding economic opportunities is also key to addressing the programs driving those deficits, making a trigger a self-defeating strategy even for those concerned about budget shortfalls. The nation’s fiscal future will be uncertain as long as the economic barriers created by the current tax code remain; a trigger only makes those barriers more difficult to tear down, especially for Americans seeking to get ahead. We urge the Senate to reject a tax hike trigger as it works to refine the tax reform bill and enact it into law.”