By Sue Santa, policy and legal consultant
For several years, we’ve been hearing promises of comprehensive tax reform. Both Congressional leaders and the Trump administration voice their commitment, and we’re told the President will release a plan soon. The President is slated to address Congress on February 28, so we may get signals then of what he has in mind. Congress too is fine-tuning its plan.
Congressional leaders aim for comprehensive tax reform to achieve several broad goals:
- Simplify an overly burdensome and confusing tax code;
- Lower rates and broaden the base (i.e., remove many deductions, loopholes);
- Spur economic growth;
- Level the playing field for U.S. corporations; and
- Reinstate “fairness.”
Exactly how this will be achieved, at what cost, and whether those costs will need to be offset with tax revenues are issues that remain to be resolved. We also don’t know if a truly comprehensive overhaul—addressing both individual and corporate taxes—is achievable. It’s a monumental aspiration at a time when there’s very little agreement in Washington—in Congress, with the Administration, and within the political parties—beyond broad concepts. In the end, we might see slimmed back efforts.
With all this uncertainty, why should we be vigilant now? Don’t we have time? No, we don’t.
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