U.S. House of Representatives, Select Committee on Economic Disparity and Fairness in Growth

Hearing: “Tackling the Tax Code: Evaluating Fairness, Efficiency & Potential to Spur Inclusive Economic Growth”

Written Testimony of Amy K. Matsui, Director of Income Security and Senior Counsel

National Women’s Law Center

June 22, 2022

Tax policies that favor high-income taxpayers and exclude taxpayers with low and moderate incomes, among whom women supporting families on their own and households of color are overrepresented, reduce the progressivity of the tax code. In contrast, refundable tax credits like the Earned Income Tax Credit and Child Tax Credit are targeted to families with low and moderate incomes, and both improve those families’ economic security and well-being, and advance gender and racial equity.

Congress should expand refundable tax credits to increase fairness in the tax code and advance gender and racial equity. In addition, policymakers should undertake a broader review of the tax code to ensure that tax benefits are not structured so that they primarily benefit the already-wealthy and exclude women and people of color. Moreover, Congress should make sure that the super-wealthy and large corporations pay their fair share of taxes, which would make the tax code fairer and more equitable and provide more revenues to support public investments. Finally, Congress should restore and increase IRS funding so that it can effectively administer tax benefits and equitably enforce the tax laws.