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: VAT RATES :: VAT Audit :: form 3cd :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: empanelment :: TDS
 
 
News Headlines »
 GST: One nation, one market, one tax
 Ready or not, businesses brace for biggest-ever tax reform
 Ready or not, businesses brace for biggest-ever tax reform
 Make your inventory and invoicing software GST Ready from Binarysoft
 Filing income-tax returns gets simpler for salaried persons
 Ten rules you must follow while filing income tax returns
 Reforming the income tax tribunal
 How the new system might impact consumers and businesses
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules
 Ten facts to know about filing income tax return this year

Time To Retire Income Tax Reform?
March, 10th 2015

Recently my colleagues Marty Sullivan, Jeremy Scott and Joe Thorndike wrote long blog posts on tax reform. Marty expanded the menu of possibilities, Jeremy wondered if we are asking the right questions about spending, and Joe discussed the optimists’ view. I have a more direct approach to income tax reform: Stop talking about it.

In August 1950 freshman Sen. Hubert Humphrey took to the floor to discuss what he saw as the shortcomings of the Revenue Act of 1950. He criticized new or continuing incentives and suggested, as President Reagan would in the 1980s, that fewer loopholes and lower rates would be the better approach. We have come to accept as a given this broad-base, low-rate paradigm for tax reform. We have not, however, accepted the hard work of broadening the tax base.

If we take Humphrey’s speech as marking the birth of income tax reform, then we can see that it had a good career in its 20s and 30s with the tax reform acts of 1975, 1976, and 1986. After that, reform continued to work but with less vigor through the late 1980s and into the 1990s. Once it turned 50, however, its career was eclipsed by tax cuts made popular during the George W. Bush presidency. Since President Obama came into office, conservatives and the businesses community seem to have moved tax cuts into old reform’s office without changing the nameplate on the door.


In recent weeks, the challenge of putting income tax reform back to work has been made clear again. House Republicans have reached for the crutch of dynamic scoring in the hopes that it will allow them to avoid the most painful parts of reform. Congress maintained its focus on business tax reform and a desire to dramatically reduce tax rates. Obama put forth an individual tax reform proposal that would address income and wealth inequality, but has no chance of acceptance by Republicans. The stalemate continues.

If Congress and the administration cannot get income tax reform to be productive by the August recess, when it turns 65 — and they won’t — we should retire the concept. With income tax reform out of the way, we could focus the conversation on the important issue – the size and scope of government. If eventually we can agree on how much tax we need to collect, we can always ask tax reform to come out of retirement for a little consulting.

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

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