Senate Finance Committee Chairman Max Baucus (D-Mont.) and the panel’s top Republican, Utah’s Orrin Hatch are attempting a ‘blank slate’ approach to the current U.S. tax code.
In turn, the Senators are wiping out all the tax provisions now in the code and are now putting the onus on their supporters to prove why the provisions should be left in the code. The have until July 26th left to make their point.
Baucus and most Democrats say the government needs new revenue. They say not all the money gained by scrapping tax breaks should go to lowering tax rates. Most Republicans, including Grover Norquist, president of Americans for Tax Reform, take the opposite view. Norquist, on Wednesday, threw his support behind the latest bid by Senate tax writers to overhaul the U.S. tax code.
“A revenue-neutral reform target is an absolutely essential precondition to any tax reform,” Norquist wrote. “Tax reform should not be a stalking horse for a net tax increase.” Norquist listed several other steps senators should take including eliminating taxes on capital gains and dividends
Politico has released what it thinks are some of the tax breaks currently in the tax code that could be purged and possible lobbyists’ responses to the suggested reform. Continue Reading…