|House Republicans support comprehensive tax reform to get Americans working again and our economy back on track. Independent economists estimate that, when coupled with reduced federal spending, comprehensive tax reform could lead to the creation of 1 million jobs in the first year alone.
The Ways and Means Committee held 20 separate hearings on comprehensive tax reform in the 112th Congress, released an international tax reform discussion draft in October 2011 and released a financial products discussion draft in January 2013. In February, Chairman Dave Camp (R-MI) and Ranking Member Sander Levin (D-MI) announced the formation of 11 separate Ways and Means Committee Tax Reform Working Groups. You can learn more about the working groups and tax reform below.
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Tax Reform Working Groups
Each of the 11 groups will review current law in their designated issue areas and then identify, research and compile feedback related to the topic of the working group. The working groups will be responsible for compiling feedback on their designated topic from: (1) stakeholders, (2) academics and think tanks, (3) practitioners, (4) the general public and (5) colleagues in the House of Representatives. On Monday, May 6, 2013, the Joint Committee on Taxation (JCT) issued a report for the full Committee that describes current law in each issue area and summarized these submissions and other information gathered by the Committee Members throughout this process.
To view the JCT Tax Reform Working Group Report, click here.
To view a list of the 11 working groups, including the Chair and Vice Chair for each group, click here.
To view comments that have been submitted to the working groups click here.
Strengthening the Economy and Increasing Wages by Making the Tax Code Simpler and Fairer for America’s Small Businesses
On March 12, Ways and Means Committee Chairman Dave Camp (R-MI) released a third discussion draft as part of the Committee’s broader effort on comprehensive tax reform that significantly lowers rates while making the tax code simpler and fairer. The third draft is specifically focused on reducing the burden the tax code imposes on small businesses.
With about half of the private sector workforce employed by a small business – a total of nearly 60 million Americans – every dollar spent on complying with an overly complex, burdensome and broken tax code is a dollar that cannot be used for investment, hiring and higher wages for American workers. The discussion draft contains several core components that simplify tax compliance for small businesses and provide certainty with respect to the ability of small businesses to recover certain costs immediately. These include widely supported reforms such as permanent section 179 expensing and expansion of the “cash accounting” method, amongst other provisions. The discussion draft also includes two separate options designed to achieve greater uniformity between S corporations and partnerships – one that revises current rules and a second that replaces current tax rules with a new unified pass-through regime.
The discussion draft reflects what has become a trademark of Camp’s approach to tax reform – an open and transparent process in which stakeholders are encouraged to review and comment on specific legislation prior to formal legislative action. Chairman Camp encourages all interested parties to provide feedback to the Committee staff and to the Small Business/Pass Through Tax Reform Working Group.
Holding Wall Street Accountable And Protecting Taxpayers By Creating A Simpler, Fairer Tax Code: Financial Products Tax Reform
On January 24 Ways and Means Committee Chairman Dave Camp (R-MI) released a financial products discussion draft as part of the Committee’s broader effort on comprehensive tax reform that significantly lowers rates. The proposal seeks to modernize tax rules to minimize Wall Street’s ability to hide and disguise potentially significant risks through the abuse of derivatives and other novel financial products – an activity that was a contributing factor to the 2008 financial crisis. The discussion draft also outlines changes to tax rules designed to provide greater simplicity and uniformity.
The discussion draft consolidates several reforms that have been identified as necessary to provide more uniform tax treatment of financial products.
The discussion draft reflects what has become a trademark of Camp’s approach to tax reform – an open and transparent process in which stakeholders are encouraged to review and comment on specific legislation prior to formal legislative action.
Camp Comments on Comprehensive Tax Reform
In the News: Camp on Comprehensive Tax Reform
Laying the Foundation: The Ways and Means Committee’s Record on Comprehensive Tax Reform
Since Republicans took back the majority in the House for the 112th Congress, the Committee on Ways and Means has embarked upon an active agenda in pursuit of comprehensive tax reform. Over the past two years, the Committee has:
Making America A More Attractive Place To Hire and Invest: International Tax Reform
- Conducted 20 separate hearings on comprehensive tax reform.
- Established that comprehensive tax reform should include top corporate and individual tax rates of 25 percent.
- Secured inclusion of comprehensive tax reform with a top rate of 25 percent in the House Republican Budget Resolution for FY 2012 and FY 2013.
- Released a draft proposal for moving from a “worldwide” system of taxation to a “territorial” system of taxation. Learn more below.