With tax reform growing as a topic of discussion in DC, the two leaders of the tax-writing committees in the House and Senate -- Rep. Dave Camp (R-MI) and Sen. Max Baucus (D-MT) -- have teamed up to move the process forward. In addition to their separate work within each committee discussing options and writing drafts of reform legislation, the duo has now launched a joint website taxreform.gov and a Twitter account @simplertaxes.
As work on tax reform gets going, the Joint Committee on Taxation has provided a 568-page report laying out just about everything you need to know about the tax code. The report, provided to the House Ways and Means Committee, lays out what the current tax code looks like and where reforms could head.
A recent article in The New York Times entitled "The Corporate Tax Game" details the tricky politics of corporate tax reform, especially when it comes to deciding how to pay for a rate reduction. With a variety of interest groups out there, businesses may be divided over the tax preferences that should be on the chopping block.
Recent reports from Capitol Hill show momentum for tax reform is building. Both the House Ways and Means and Senate Finance Committees have been compiling options and draft reports on different aspects of tax reform, demonstrating a commitment from both tax-writing committees to examine the tax code.
For the first time in a few days, Tax Day did actually fall on April 15, so hopefully the tax procrastinators out there were able to get their filing done. Filing your taxes provides a good reminder of how complicated the current code is. With the President's budget coming out, we'll take a look at how it would change the tax code.
It's Tax Day, meaning that those who procrastinated spent their weekends trying to work through our overly-complex tax code. The federal code contains nearly four million words and the IRS's Taxpayer Advocate estimates that businesses and individuals spend nearly 6.1 billion hours a year completing their filings.
Getting Congress to take on tax reform will be difficult, but the two lawmakers in charge of the tax-writing committees seem to be committed to reforming our nation's inefficient and overly-complicated tax code.
Today, the RATE Coalition sent a letter to the chairs and ranking members of the House Ways and Means and Senate Finance Committees, urging them to take up corporate tax reform which lowers rates in order to make the tax code more competitive. As they write:
It is well known that the corporate tax code is littered with tax provisions that cost the government revenue. Today, the U.S. has the highest top marginal rate in the world, discouraging growth and investment, and a complex corporate code that diverts resources from more productive purposes and creates disincentives. While some tax provisions may be serving a legitimate purpose, there are others that provide spillovers beyond lawmakers' original intent.