Tax Reform Proposal : Congress Recoils in Fear

Just think if someone really tried to get a 'flat tax' pushed through congress and the possibility of having a president sign a bill like that, what would the results of this be on the tax preparation industry?

Think about all the lawyers and businesses that do tax preparation today, let alone individuals that have one-man businesses that do preparations? Do you think there would be push back?

Now, think about ObamaCare and when this disaster is fully ingrained in our health care system, how would we ever get rid of it?

(National Center for Policy Analysis )
Tax reform. House Ways and Means Committee Chairman Dave Camp (R-MI) proposed legislation this week that would overhaul the tax code for the first time in a generation. His proposal would reduce the overall number of tax brackets from seven to two (10% and 25%) and lower the corporate income tax rate from 35% to 25%.

 The Joint Committee on Taxation (JCT) estimates that the Camp plan would reduce the effective rates on most capital gains and dividends and increase the gross domestic product by as much as 1.5% to 1.6% per year. For more detail and analysis about the Camp plan, see NCPA Senior Fellow Pam Villarreal's blog post on the topic.

 

As with any large-scale effort like tax reform, special interest groups (and their lobbyists on K Street) lined up to denounce, praise, disavow, or take credit for bits and pieces of the Camp plan. Echoing the sentiments of garden-variety Representatives and Senators who do not want to spend time during an election year explaining a complicated tax reform plan, the Speaker of the House downplayed the proposal and the Senate Republican Leader simply said there was "no hope" for tax reform this year. But Camp's office is taking the long view, reminding everyone that the 1986 tax reform law was actually introduced as legislation years before that.