Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: VAT Audit :: Central Excise rule to resale the machines to a new company :: empanelment :: TDS :: cpt :: form 3cd :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARD
 
 
News Headlines »
 6 important income tax rules for individuals which will change from April 1, 2017
 Key changes in income tax rates individuals need to look at from 1 Apr
 Provisional Enrollment under Goods and Service Tax (GST)
 Ten income tax changes that will come in to effect from April 1
 New income tax provisions you need to be aware of
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return

Tax Reform Is Possible, But It Won't be Easy
November, 05th 2015

At a Tax Policy Center conference on tax reform yesterday, Jason Furman, the chair of the President’s Council of Economic Advisors, said that a major rewrite of the tax code would make little progress until Congress breaks the current impasse over the treatment of pass-throughs– firms such as partnerships and S corporations whose owners pay tax on their individual tax returns.

Furman said there was more potential for action on the corporate side, where policymakers have broadly agreed to reduce U.S. corporate tax rates. But even that effort faces a big hurdle: The biggest beneficiaries of corporate rate cuts would be big multinational firms but most proposals to pay for those rate reductions would eliminate tax preferences that benefit both corporations and pass-throughs. Those pass-throughs, which make up the vast majority of US businesses, would aggressively oppose such a trade-off.

Yesterday’s conference commemorated the 10th anniversary of President George W. Bush’s Advisory Panel on Federal Tax Reform. That bipartisan group, led by former senators John Breaux (D-LA) and Connie Mack (R-FL), also included economists and business executives. And it developed two plans for broad-based reform, a simplified income tax and a business cash-flow tax. Both were credible, well-designed ideas, but the commission report got no support from the Bush Administration or Congress and went nowhere.

Still, many of its ideas have surfaced in more recent tax proposals, including several made this year by the major GOP presidential candidates. The one big difference: The Tax Panel’s plan raised the same amount of money as the then-tax code (under the assumption that the 2001-03 tax cuts would be made permanent). Today’s versions are all enormous tax cuts.

A panel of commission veterans agreed that it may be possible, though hardly easy, to enact broad-based reform. However, they candidly acknowledged the hurdles, some of which may be higher today than in 2005.

MIT economist Jim Poterba said that two big economic changes in the past decade complicate reform because they create what may be conflicting goals.

On one hand, persistent slow growth in the US economy increases demand for pro-growth reform, which would include lower taxes on capital income (though Poterba acknowledged that evidence for exactly what changes would best accomplish those goals is weak). On the other hand, growing concerns about income inequality make it more difficult to reduce taxes on capital, which could boost after-tax inequality .

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions