Tax reform is a topic that seemingly Washington, D.C. politicians like to talk about. It seems like they have an easier time talking about it if they claim it’s broken and that they have the solution to fix it.
So it wasn’t much of a surprise when President Barack Obama announced his corporate tax reform plan at an Amazon fulfillment center in Chatanooga, Tennessee in late July. The speech wasn’t a game changer when it comes to Congress passing any new laws, but it showed where Obama stands: cut the corporate tax rate from 35 to 28 percent, with a preferred 25 percent rate for manufacturers.
But his plan was joined with a little bit of spending on infrastructure and education, meant to boost middle class job growth. That policy was intended to attract both Republicans, who always want to cut tax rates, with Democrats, who typically want to see targeted government spending in these two key areas.
Obama isn’t alone in the debate, however. Two of Congress’s more powerful legislators are also getting in on the mix.
Montana Senator Max Baucus and Michigan Congressman David Camp are barnstorming the country to gather support for their own tax reform package. Baucus chairs the Senate’s Finance Committee, and Camp chairs the House of Representative’s Ways and Means Committee. Both politicians hold a lot of clout when it comes to molding the U.S. tax code.
The bipartisan duo – Baucus a Democrat and Camp a Republican – went on a summer long “roadshow” mean to stir up debate and build public support for their own tax reform package. But with the Congressional calendar dominated by immigration reform and the impending government debt ceiling showdown, some wonder whether tax reform will get the fair shake it deserves.
And, the two have split on whether tax reform should increase government revenue.
If you or your business are caught in some tax trouble, then a fair shake is what you deserve from the IRS. Getting that fair shake won’t be easy, as IRS agents aren’t known for their sterling reputations. But joining forces with a tax professional will help you get it.
You may not be joining forces with two of Washington, D.C.’s most powerful tax-law-writing politicians, but it’s a start.
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