Grassley Amendment Provides for Revenue Neutral Tax Reform

Press Release

Sen. Chuck Grassley of Iowa today filed an amendment to the budget before the full Senate that would strike the requirement to raise nearly $1 trillion through new revenue -- most likely through tax increases -- and create a deficit-neutral reserve fund for pro-growth, revenue-neutral, comprehensive tax reform.

"Raising revenues by closing so-called loopholes or reducing tax expenditures is a tax increase," Grassley said. "Unless it's used to offset true tax reform, it's a tax increase that will support even more spending. Tax reform should be revenue-neutral, and my amendment would ensure that any reduction in tax preferences is used to lower tax rates, not to finance more spending."

Grassley's amendment is co-sponsored by Sen. Mitch McConnell, the Republican leader, and Sens. Mike Enzi, John Cornyn, Orrin Hatch, Richard Burr, Pat Roberts, Rob Portman, Johnny Isakson, and John Thune. It's similar to an amendment he offered in the Budget Committee last week.

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