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US Senate Finance Committee
Tax Reform Legislation
The Senator’s approach to tax reform is to clear out all the unproductive provisions. They expect to simplify tax reform by operating from an assumption that all special provisions are out unless there is clear evidence that they: (1) help grow the economy, (2) make the tax code fairer, or (3) effectively promote other important policy objectives. Senators would be asked to submit proposals on what tax provisions to add back in to the legislation based on these three criteria.
In the letter to their colleagues they shared their belief the country’s tax code is bloated and outdated. That the income tax was established a century ago, in 1913 and it has been a generation since our last tax reform in 1986. As Chairman and Ranking Member of the Finance Committee, they are determined to complete tax reform this Congress.
The Senator’s indicated that the blank slate is not intended to be the end product, nor the end of the discussion. The Senator’s agree that some of the special provisions serve important objectives. Indeed, they both believe that some existing tax expenditures should be preserved in some form. But they feel that the tax code is also littered with preferences for special interests.
Under the Senate Finance Committee plan, Senators are required by July 26th to submit specific plans to add tax provisions and justify their inclusion.