Tax Reform

Reducing the Tax Burden on Middle-Class Families and Small Businesses

Throughout his career, Senator Reed has voted to reduce the tax burden on hardworking Rhode Islanders and local businesses. He supports responsible tax reform that boosts take-home pay, spurs job growth, closes egregious loopholes, expands opportunity, and strengthens the long-term financial stability and security of our nation.

Reed opposed the trickle-down Trump Administration tax bill because it was unfair, irresponsible, and amounted to a historic transfer of wealth from students, seniors, and working families to multi-national corporations and the wealthy. That law weakened America’s financial stability and undermined the integrity of our tax structure, baking corporate tax avoidance into the system.

Senator Reed supports reforms to simplify our tax code and make it fair for families and employers alike. He has offered legislative fixes to end the loopholes that benefit special interests at the expense of working Americans, and he has supported legislation to ensure that corporations pay their fair share.

Giving more money to the wealthy and hoping it will trickle down to the rest of society is bad economics. It adds to America’s debt burden and makes rich people richer. Senator Reed knows that repairing the tax code to make it more supportive of middle-class Americans is key to a booming economy and a fairer America, and he supports efforts to do just that.

KEY PRIORITIES & ACCOMPLISHMENTS

Senator Reed served on the bipartisan working group that crafted the landmark Middle-Class Tax Relief and Job Creation Act, which included Senator Reed’s layoff prevention provision to finance work sharing programs. Work sharing has been a successful approach in Rhode Island and other states to protect worker earnings while helping employers maintain their workforce even when they need to reduce hours because of economic conditions.
Reed introduced the Stop Corporate Inversions Act and the American Business for American Companies Act to end the corporate shell game that has enabled some companies to shift their addresses abroad, in order to reduce their taxes and increase the tax burden on American taxpayers.
In order to close a major loophole that allows special and excessive tax write-offs on multi-million dollar executive pay, Reed authored the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act. He also offered a plan to save taxpayers $415 million by prohibiting corporations from getting tax deductions for court-ordered punitive damages they pay for their misconduct.
Senator Reed cosponsored the Working Families Tax Relief Act to cut taxes for workers and families by expanding the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), two of the most effective tools in putting money in the pockets of working people and pulling children out of poverty. Expanding the credits would give millions of additional Americans a foothold in the middle class.

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