Lew highlights clear differences on tax reform policy

Lew argued that the revenue is needed to “get our fiscal house in order” and the issue is the major hurdle to getting a tax reform bill put together this year. 

He is headed over to the Senate Finance Committee on Wednesday afternoon to discuss President Obama’s $3.77 trillion budget, which was released on Wednesday. 

“We are very much supportive of both individual and business tax reform, we think they need to move together and we look forward to working with you this year,” he said. 

“This is a big challenge that requires Democrats and Republicans standing shoulder to shoulder,” he said. 

Lew suggested the parties work together to nix “special provisions” that complicate the business tax system. 

“The goal is to stimulate economic growth and job creation.”

He agreed with panel Chairman Dave Camp (R-Mich.) that the individual tax code is complicated and should be simplified under any plan. 

Camp said the tax code isn’t about how much money it makes for Washington and that it “needs to be genuinely user friendly” instead of “riddled with layer and layer of complexity.”

In addition to tax reform policy, and as part of the broader debate over the president’s 2014 budget proposal, Lew said the $85 billion sequester should be turned off soon. 

“The sooner we get the sequester out of the way the economy will be relieved of burden,” he said. 

The president’s budget puts forth $1.8 trillion deficit reduction over the 10 year budget cycle, including $580 billion in new taxes on the wealthy, uses the funds to offset the cost of the across-the-board spending cuts. 

Lew also said he expects Congress will extend the debt limit this summer and a commitment to do so will help create greater certainty for the economy.  

Republicans pressed for Lew to explain why the Obama budget didn’t balance until the 2050s. 

He emphasized that he has had a hand in balancing three federal budgets in his career and that the nation’s severe recession doesn’t, at this point, permit the White House to make deep spending cuts to balance within a decade. 

“If you try to get there too fast you do more damage to the economy and you end up making less progress, not more progress in trying to reach the goal.”