By SEMA Washington, D.C., Staff
The U.S. Senate Finance Committee leadership intends to start with a blank slate as they draft legislation to reform the federal tax code. Through this approach, all deductions and credits would be removed so as to reduce overall tax rates. Popular tax breaks, such as the child credit, mortgage interest deduction, research and development tax credit and charitable deductions, would only be reinserted if there is sufficient evidence that the provisions help grow the economy, make the tax code fairer or effectively promote important policy objectives.
The House Ways and Means Committee intends to adopt the same blank-slate approach. Both committees have held hearings on the topic and are seeking public input. While there is a general desire to complete a tax overhaul by the end of 2014, many conflicts need to be resolved in order to achieve the goal. A primary question as a result is whether monies saved through reform should be used to lower tax rates or reduce the deficit.
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