December 10, 2017 - "U. S. Senate Tax Reform Bill Passed"

On December 2, 2017 the United States Conference of Catholic Bishops issued a statement as the U.S. Senate passed its tax reform bill. Bishop Frank J. Dewane of Venice Florida, chair of the U.S. Conference of Catholic Bishops’ Committee on Domestic Justice and Human Development called for Congress to fix fundamentally flawed tax policies as the House of Representatives and Senate attempt to reach agreement on a final bill.  Here is the full statement:
                “Today, the U.S. Senate passed its tax reform legislation, and it will now be reconciled with the House of Representative’s passed bill in an effort to reach agreement on the details of a final piece of legislation.  Congress must act now to fix the fundamental flaws found in both bills, and choose the policy approaches that help individuals and families struggling within our society.
We are reviewing the final Senate bill and will soon provide analysis about key improvements that are necessary before a final agreement should be reached and move forward.  For the sake of all people—but especially those we ought, in justice, to prioritize—Congress should advance a final tax reform bill only if it meets the key moral positions outlined in our previous letters.”
 
On October 25, 2017, Bishop Dewane wrote both to Senators and the Representatives about the fact that tax revenues and public spending take on crucial economic importance for every civil and political community.  The goal to be sought is public financing that is itself capable of becoming an instrument of development and solidarity.  He offered six moral principles to assist them in their deliberations.  I want to go over three of these principles now as they an excellent application of Catholic Social Teaching.  I’ll cover the other three points next week.
 
1. Care for the poor.  The U.S. Bishops have long emphasized that “[t]he tax system should be continually evaluated in terms of impact on the poor” (Economic Justice for All [“EJA”], 202).  Complex economic systems admit of many variables, and certainly about how tax policy will play out over time can be elusive, requiring prudent and honest projections.  What should be certain is that the risks associated with tax policy ought not be borne by the most vulnerable.  The poor should not be burdened with income taxation as they struggle to meet their daily needs, and programs designed to support them and lift them out of poverty must be adequately funded.
 
2. Family formation and strengthening.  Pope Francis has stressed that “[t]hose services which society offers its citizens are not a type of alms, but rather a genuine ‘social                                                                                                                                                                                                           debt’ with respect to the institution of the family, which is foundational and which contributes to the common good.” Instruments of the tax code that benefit the family such as the Child Tax Credit and the Earned Income Tax are especially important.  These credits should be increased, and those increases be made refundable so that the benefits can reach the poorest families, including the working poor. The “United Framework” indicates that the so-called “marriage penalty” for the Child Tax Credit will be eliminated.  Removing financial barriers to marriage is essential to family formation and well-being
 
3.  Progressivity of the tax code. St. John XXIII wrote, “In a system of taxation based on justice and equity it is fundamental that the burdens be proportioned to the capacity of people contributing” (Mater et Magistra, 132).  The common good and the stability of society require that the tax code include progressive elements designed to recognize the means of individuals and families, as well as the economic inequality present in society, and apportion tax burdens accordingly.  The “United Framework” states that the revised tax code will be “at least as progressive as the existing tax code” and that it “does not shift the tax burden from high-income to lower- and middle-income taxpayers.”  These principles are essential for justice and must be key features of any tax reform.
 
Until next week,
Fr. John Dillon