TribLIVE

| USWorld


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Congress lawmakers get month to save tax breaks

Daily Photo Galleries

By The Washington Post
Thursday, June 27, 2013, 8:27 p.m.
 

WASHINGTON — The Senate's chief tax writers want to scrap the entire code and start from scratch in their push for tax reform, and on Thursday they gave lawmakers a month to make a case for preserving some of the $1.3 trillion in breaks on the books.

In a letter sent to all 98 of their colleagues, Senate Finance Committee Chairman Max Baucus, D-Mont., and his Republican counterpart, Sen. Orrin Hatch of Utah, said they would take a “blank slate” approach to the tax code that assumes the removal of thousands of popular perks, including such sacrosanct policies as the deduction for mortgage interest, the child credit, and the lower tax rate for dividends and capital gains.

“This blank slate is not, of course, the end product, nor the end of the discussion,” Baucus and Hatch wrote. “Some of the special provisions serve important objectives. Indeed, we both believe that some existing tax expenditures should be preserved in some form.”

However, the letter states, “the tax code is also littered with preferences for special interests. We plan to operate from an assumption that all special provisions are out unless there is clear evidence that they: (1) help grow the economy, (2) make the tax code fairer, or (3) effectively promote other important policy objectives.”

The announcement puts Senate tax writers on the same page as House Ways and Means Committee Chairman Dave Camp, R-Mich., and clears the way for substantive work to begin on the first comprehensive rewrite of the tax code in nearly three decades.

“Today's announcement by Chairman Baucus and Sen. Hatch is welcome news for Americans who deserve a simpler, flatter, fairer tax code that leads to more jobs and higher wages,” Camp said in response to the letter.

Subscribe today! Click here for our subscription offers.

 

 
 


Show commenting policy

Most-Read Nation

  1. Case on Obamacare tax subsidies heads to Supreme Court
  2. Obama promises to veto Republican vote to reverse NLRB rule on unions
  3. Railroad measure awaits House approval
  4. Lawmakers press Veterans Affairs for improved access to rural health care
  5. Carnegie Mellon expert to school Congress on security
  6. Natural gas royalties lawsuit hinges on transaction date
  7. Tribune-Review poll: Cable news rises as network news falls
  8. $4.8M in gold taken in armored truck hijacking in North Carolina
  9. GOP admits defeat as Congress approves Homeland funding
  10. Petraeus, Justice Department reach plea deal on secret info given to mistress
  11. Maryland’s Senator Mikulski announces retirement