Yesterday, House Ways & Means Chairman Dave Camp released a tax reform discussion draft, and we commended him for the level of detail and consideration provided. We'll continue to cover the interesting aspects of the draft throughout the week.
In a widely anticipated move in the tax world, House Ways and Means Chairman Dave Camp (R-MI) has released a comprehensive tax reform discussion draft after both tax-writing committees had released a number of discussion drafts dealing with specific sections of the tax code. There is a lot to analyze in the bill: a quick summary of the bill's major reforms is below, and a more detailed analysis will follow later in the week.
Tomorrow, House Ways and Means Chairman Dave Camp (R-MI) is expected to release his comprehensive tax reform proposal after a series of discussion drafts. The tax code is in significant need of an overhaul, and reform can to improve fairness and simplicity, make U.S. businesses more competitive, and reduce the deficit. Over the years, CRFB has produced extensive analysis of previous proposals and the need for tax reform.
Next week, House Ways & Means Chairman Dave Camp is set to release a draft of a bill to revamp the U.S. tax code, according to press reports. It was unclear whether Camp would release a tax reform draft at all, as House Republican leadership remains skeptical of tax reform, and Camp's Senate taxwriting counterpart Max Baucus was recently confirmed as Ambassador to China.
While the President's 2014 State of the Union address largely eschewed talking about fiscal policy directly, it did touch on a number of proposals that would impact the federal budget. In this blog, we will talk about the potential costs or savings of various policies he mentioned.
Business Tax Reform
We couldn't have said it better ourselves! A Washington Post editorial today called on Congress to break with the trend of recent Congresses and actually pay for any extensions for expired and expiring tax provisions.
Today, the House Ways and Means Committee launched a new website on tax reform, compiling all of the Committee's useful resources on the subject. We've talked about the great benefits of reforming the tax code by eliminating the many of the complicated, inefficient, and regressive tax expenditures that will cost the federal government over $1.2 trillion in forgone revenues in 2014.
Last month, President Obama gave a speech on rising income inequality in the United States, which is a theme expected to be prominent throughout the President's 2014 agenda.
Yesterday, the IRS Taxpayer Advocate released its 2013 annual report, detailing what it sees as the largest problems facing taxpayers. The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers resolve problems with the IRS and recommend changes that will prevent those problems.
It's the beginning of 2014, and Congress did not pass legislation to extend the "tax extenders," a collection of over 50 provisions that expired at the end of 2013. Although they might later be extended retroactively, that means that a motley collection of tax breaks for research and spending by small businesses, along with specialized breaks for Puerto Rican rum, NASCAR tracks, racehorses, and movie studios have vanished, at least for now.