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Nomineealert April 2009 NomineeAlert Garrett’s this issue: Background Elizabeth Garrett, Nominee for Assistant Secretary of Treasury Co-Director, USC-Caltech Center for the Study of Law and Politics for Tax Policy Vice President for Academic Planning and Budget, USC Vice Provost for Academic Affairs, USC Who is Elizabeth Garrett? Tax me more baby... Visiting Professor, California Institute of Technology On March 28, 2009 President Obama defines what she considers, “upper income,” or announced Elizabeth Garrett as his nominee to what she believes is “their fair share.” Professor, University of Chicago be Assistant Secretary of Treasury for Tax However, from her constant harping on the Deputy Dean for Academic Policy. issue one could conclude Affairs, University of Chicago When you think about the that no matter how high it Garrett is an academic objectives of a tax system you was it would not be Visiting Professor, UVA “ who believes that you think about progressivity, enough to be “fair.” Visiting Professor, Central are not taxed enough. fairness… We do a lot with European University “When upper-income our tax code. We don’t just Visiting Assistant Professor, It is unclear how much raise revenue... But ultimately people are not paying Harvard Elizabeth Garrett would you’re going to have to make their fair share, Ms. like to raise taxes; but Garrett said, ‘it erodes Legislative Director and Tax and some tradeoffs among those Budget Counsel for Sen. Boren from her public goals. Take a goal that’s very confidence in the statements, it is clear important to me: progressivity system’.” Fn.1. Legal Advisor, Judge Holtzmann, that she wishes to do so. Iran-United States Claims and fairness. That requires Tribunal, The Hague Over and over again, that you make distinctions “Every tax bill since the she talks about the among taxpayers. 1986 reform has made Law Clerk, Justice Thurgood importance of the system more Marshall progressivity and ” complicated and less fair, Law Clerk, Judge Stephen “fairness” in taxation. and it's time to turn that around." Fn.2. Williams, DC Court of Appeals Garrett believes taxes are not just to raise “Elizabeth Garrett, a USC law professor, said EDUCATION revenue but to set social[ist] policy. She also she was not satisfied with the current tax code's J.D. University of Virginia School of Law believes that it is “fairness,” for one taxpayer to progressivity -- the degree to which taxpayers pay at a higher percentage of income than pay a higher share as their income increases.” B.A. University of Oklahoma another. The higher the better. Garrett never Fn.3. What you really need to know about Sources for further Elizabeth Garrett in her own words. reading: Fn.1. David E. “The final noteworthy characteristic of our reform plans is that both have progressive rates. This reinforces the long-standing tradition in this country of progressivity in the tax code as Rosenbaum, Tax Panel part of its fundamental fairness, and it responded to the direction of the President to bring Wants to End the A.M.T., forward proposals that were fair and appropriately progressive. Even a pure consumption tax NEW YORK TIMES, July 21, – which was not among the Panel’s recommendations – can have progressive rates. For 2005 at C1. Available the record, I have included with this testimony my statement upon the release of the Panel’s online at: http:// report that discusses the urgent need for a renewed commitment to increased progressivity in www.nytimes.com/2005/07/ today’s current economic and social climate. As our country is increasingly characterized 21/business/21tax.html? by growing and profound inequalities of wealth and opportunity, a progressive tax system – as well as government programs designed to increase economic and _r=2. educational opportunity for all Americans – can help to redress the inequi- (Accessed April 15, 2009.) ties.” (Emphasis added.) Fn.2. Joel Havemann, THE Elizabeth Garrett, Statement on Tax Reform, Senate Finance Committee, August 3, 2006. Available NATION; A Twist on the online at: http://finance.senate.gov/hearings/testimony/2005test/080306egtest.pdf. (Accessed April 15, 2009.) Consumption Tax Gains Traction; The X tax is just Garrett opposes the Fair Tax but is open to a Value Added Tax: one option that a panel ad- vising Bush is considering “The so-called “FairTax” plan is not a realistic proposal for the country, it would not as it looks for ways to provide adequate revenue at reasonable rates; it would harm many of the very people who overhaul the current support it; and it meets none of the goals of a healthy tax system. In contrast, a Value Added system. LOS ANGELES Tax, along the lines of the VATs used by the vast majority of our major international TIMES, October 9, 2005, at competitors, should remain on the table but as part of the reform of Social Security and A27. Available online at: Medicare... Although this issue is not before you now, I encourage you to refer to the Panel’s http:// report when you do consider this possible source of revenue, and I urge you to consider it [a www.taxpolicycenter.org/ VAT] seriously as a replacement for the payroll tax.” (Emphasis added.) Elizabeth Garrett newsevents/ statement, supra. archive_citation.cfm? tem- Garrett thinks that non-profit organizations should have to reveal their plate=cite_twist_consumpti involvement in initiative campaigns, with the exception of a small number of on_archive. groups that have reason to fear physical violence: (Accessed April 15, 2009.) “The McConnell Court reaffirmed the need for case-by-case exceptions to protect groups at Fn.3. Joel Havemann, The risk of ‘economic reprisals or physical threats.’ The structure of any exemption must be Nation; Tax Panel to Offer carefully devised so that groups actually can avoid publicizing the names of their members or Bush Two Overhaul Plans; signaling that they might be involved in presenting despised viewpoints. This concern for One proposal to simplify the anonymity, while important, does not sweep broadly, and it would not allow economic system would scale back or [e.g. trade organizations, corporations, labor unions] and ideological groups [e.g. NRA, kill some deductions. The NARAL, Sierra Club] that prompt some negative voter reaction to avoid disclosure other would also exempt justified by a voter competence rationale.” investment income, LOS ANGELES TIMES, October Elizabeth Garrett and Daniel A. Smith, Veiled Political NomineeAlert 19, 2005 at A23. Available Actors: The Real Threat to Campaign Disclosure THIS ALERT IS A SERVICE OF online at: http:// Statutes, USC Law and Public Policy Research Paper AMERICANS FOR LIMITED GOVERNMENT articles.latimes.com/2005/ No. 03-13, June 2004. Available online at: http:// oct/19/nation/na-tax19. ssrn.com/abstract=424603. (Accessed April 15, 2009.) 9900 MAIN STREET (Accessed April 15, 2009.) SUITE 303 FAIRFAX, VA 22031 703.383.0880 WWW.GETLIBERTY.ORG .
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