AEI Economist Releases New Tax Plan for Economic Growth

Today, American Enterprise Institute (AEI) economist and tax expert Alex Brill released a pro-growth, progressive, and practical tax reform proposal. Brill explains that six simple changes to the tax code can create an economic environment that improves our global competitiveness.

Brill’s revenue neutral plan curbs certain existing tax breaks that primarily benefit higher income earners in order to lower the corporate tax rate to 25 percent and promote economic growth.

Brill’s plan would:

  1. Phase down the corporate tax rate to 25 percent to promote global competitiveness and foster domestic investment.
  2. Curtail the tax inducement for excessive financial leverage and reduce the tax code's bias in favor of debt relative to equity financing by disallowing 10 percent of C corporations’ interest expense deduction.
  3. Improve the tax treatment of investment by making permanent the 50 percent bonus depreciation provision now in effect but scheduled to expire at the end of 2012.
  4. Encourage the flow of capital from the less productive housing sector into the innovative business sector by reducing the tax benefit for the home mortgage interest deduction.
  5. Phase out the federal tax incentive for higher state and local taxes by removing the state and local tax deduction.
  6. Repeal the alternative minimum tax (AMT) to eliminate its compliance burden.


Read the full plan here.

Alex Brill, former policy director and chief economist to the House Ways and Means Committee, also served on the staff of the White House Council of Economic Advisers (CEA). Brill is available for interviews and can be reached at alex.brill@aei.org.

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About the Author

 

Alex
Brill
  • Alex Brill is a research fellow at the American Enterprise Institute (AEI), where he studies the impact of tax policy on the US economy as well as the fiscal, economic, and political consequences of tax, budget, health care, retirement security, and trade policies. He also works on health care reform, pharmaceutical spending and drug innovation, and unemployment insurance reform. Brill is the author of a pro-growth proposal to reduce the corporate tax rate to 25 percent, and “The Real Tax Burden: More than Dollars and Cents” (2011), coauthored with Alan D. Viard. He has testified numerous times before Congress on tax policy, labor markets and unemployment insurance, Social Security reform, fiscal stimulus, the manufacturing sector, and biologic drug competition.

    Before joining AEI, Brill served as the policy director and chief economist of the House Ways and Means Committee. Previously, he served on the staff of the White House Council of Economic Advisers. He has also served on the staff of the President's Fiscal Commission (Simpson-Bowles) and the Republican Platform Committee (2008).

    Brill has an M.A. in mathematical finance from Boston University and a B.A. in economics from Tufts University.

  • Phone: 202-862-5931
    Email: alex.brill@aei.org
  • Assistant Info

    Name: Brittany Pineros
    Phone: 202-862-5926
    Email: brittany.pineros@aei.org

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