The tax-writing Senate Finance Committee has asked the Senators to make suggestions regarding the U.S. tax code, but most politicians are reluctant to offer specifics. The tax code, which has grown too large and complex, may need to be reformed to be simpler and more effective.
The additions to the tax code over the years have not only resulted in more complications and rules but added loopholes, tax credits and deductions. The last time the tax code was completely revamped was in 1986. The problem of enforcement the government faces presently is due to the complexity of the tax code.
The deadline for suggestions is nearing, and few senators are expected to comply with the wishes of the tax-writing Senate Finance Committee. The problem before the committee is that many senators who have given their suggestions have pressed the need for tax reform without specifying how to make it happen.
Revenue is an important factor that forms the backbone of every argument concerning any alterations in the tax code. The changes will need to have little effect on revenue. The challenge is to increase revenue without raising taxes. Both political parties will have other considerations as well.
Baucus, the chairman of the tax-writing Senate Finance Committee, said the committee will draft legislation between September and November of 2013. Even if the reform does not happen this year, the efforts to reform the tax code have started and will eventually lead to concrete changes in the future.