Oct. 12, 2016
Wyden, foreground, was Finance chair in 2014. (Bill Clark/CQ Roll Call) Sen. Ron Wyden says scrutiny of Donald Trump's personal income taxes could help build consensus for a tax overhaul early next Congress - one of his top priorities as Finance chairman if Democrats win back the Senate majority in the elections.
The Oregon Democrat told CQ Roll Call that the flap over Trump's refusal to release his tax returns and his use of write-offs for large business losses could help drive the debate for the tax committee next year.
"The events of the last month have shown how broken the American tax code is," Wyden said in an interview Tuesday. "It shows that the complexity of all this is hugely helpful to the powerful special interests. So, we've got a new argument for simplicity and clarity."
Trump acknowledged during the presidential debate Sunday that he used a $916 million loss that he reported on his 1995 tax returns to avoid paying federal income taxes. His comment came after The New York Times reported the nearly billion-dollar loss could have been large enough for the real estate developer to avoid paying federal income taxes for up to 18 years.
"This is just about the best opportunity to fix this broken, dysfunctional tax code that our country's had in years and years. I'm going to do everything I can to work with my colleagues and get it done," Wyden said.
Partnership With Hatch
A comprehensive tax overhaul has eluded Congress for many years because of partisan disagreements about details and scope. Hatch said he shared Wyden's desire for a tax overhaul next year, and said they would continue frequent consultation on the issue, no matter who takes up the panel's gavel next year.
"He can hardly wait," Hatch said of Wyden's desire to restructure the tax code.
"He's been a very good partner to work with, whether he's in the majority, or whether I'm in the majority. He's been honest. That's all I can ask. And he tells me when he can't support something," Hatch added.
According to GOP aides, the Finance Committee so far has produced 41 bipartisan bills in the 114th Congress - the most for the panel since the 1980s.
In the 115th Congress, Wyden said he also has high hopes for a tax package to pay for infrastructure - something both presidential candidates are seeking. Clinton has called for $275 billion for infrastructure, while Trump has called for a package twice as large.
"Infrastructure and tax reform are going to be linked together. They will be the first two out of the gate," Wyden said.
Tax Code's Tale
Wyden said Trump's personal tax tactics underscored the fact that the tax code is a "tale of two systems": one for ordinary taxpayers, and one for moguls like Trump. "It's contrary to what the country needs in a tax code, which is encouraging innovation and the creation of good-paying jobs and fairness," Wyden said.
Wyden said he believed the two parties could find middle ground on the issue of tax rates. His own plan with retiring Sen. Dan Coats, R-Ind., now five years old, envisioned a top individual rate of 35 percent and a 24 percent corporate rate.
Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities, a liberal think tank, said it is more likely Wyden and Hatch would advance smaller tax bills, such as an infrastructure package, rather than a sweeping tax deal that could divide liberal Democrats and conservative Republicans.
"It's hard for me to see the way forward," Bernstein said.
Wyden said he planned to work with Hatch in the coming lame-duck session on a number of unfinished items, including extensions of about 30 tax breaks expiring at the end of 2016, such as renewable energy incentives. "I want to see that done in the end-of-the-year bill," Wyden said.
In addition, Wyden said he would continue to press "at the earliest opportunity" for a floor vote on his bill (S 3348) that would require presidential nominees to disclose tax returns for three prior tax years within 15 days of being nominated. "As you know, Secretary Clinton has said she would sign it as president," Wyden said, referring to the Democratic nominee.
Wyden said it remained unclear whether GOP leaders would reverse plans and move forward in the lame-duck session on the stalled Trans- Pacific Partnership trade deal.