Rep. Steven Horsford: Democrats Need a Clear Voice on Tax Reform. New Dems are Speaking Up.

By Rep. Steven Horsford

Martin Luther King, Jr. once famously said that a budget is a moral document – how someone allocates resources shows what they value, and what they don’t.

This month, President Trump and Congressional Republicans made their values crystal clear when they enacted the largest wealth transfer in modern U.S. history, lowering taxes for the ultra-rich while cutting Medicaid and critical support for working Americans to pay for it. 

The benefits for working Americans are disingenuous at best. As just one example, they capped taxes on tips at $25,000, but only for four years, and without safeguards to protect against loopholes in the law. Meanwhile, the likes of Elon Musk and Jeff Bezos are receiving massive permanent tax breaks with no caps. And to cover the costs, 17 million Americans will lose health insurance, and up to 5 million will lose food assistance, all while adding a staggering $3.4 trillion to our national deficit.  

The fact is, tax policy does more than raise revenue – it shapes our economy, and right now, Democrats must show the American people how we will create a more just economy by prioritizing working families over billionaires.

It’s not good enough to oppose the Republican grift. We must offer something better to the American people.

As Chair of the New Dem Tax Task Force, I led my colleagues in creating a tax platform that centers working people, families, and small businesses. Our proposal offers a clear alternative to the harm Republicans have just caused and serves as a roadmap for tax reform for when Democrats take back the House in 2026. 

First, we must cut taxes for working families. Our plan would extend the Child Tax Credit to reduce child poverty; strengthen the Earned Income Tax Credit; and modernize tax benefits for caregivers, commuters, and working parents. It would expand access to the Low-Income Housing Tax Credit, extend enhanced health care subsidies, and protect energy cost savings. It would also reform higher education and student loan tax benefits to better support today’s workers and students. 

Second, we will invest in small businesses and grow American jobs. Our plan expands access to capital for entrepreneurs and small businesses, reduces outdated compliance burdens, and supports startups and job creators in underserved communities. It also fixes international tax rules to prevent offshoring and profit shifting. These reforms lay the foundation for long-term economic growth that will drive innovation and keep investment rooted in America.

Finally, we must safeguard America’s financial future. Fiscal responsibility means reducing federal debt, not adding to it. Our approach would raise revenue equitably, protecting essential programs like Medicaid and SNAP and ensuring future generations aren’t burdened by rising interest costs. By responsibly reducing the deficit, we can lower inflation, keep borrowing costs in check, and continue investing in national priorities – from childcare to defense – without compromising economic stability.

These aren’t just the right priorities to support the American people – they’re the right priorities for Democrats to lead on for the future of our party. New Dems represent most of the battleground districts that are critical for taking back the House majority in 2026, my own seat included. Once we have the House majority, we will have the committee gavels in hand and will control the policy agenda. We can undo the pain Republicans are causing.

Thanks to New Dems and this tax framework, we are ready to hit the ground running in 2027.

Rep. Steven Horsford (NV-04), Chair of the New Democrat Coalition’s Tax Task Force, Ways & Means Committee Member