Speaking before the Washington-based Federal Policy Group’s seminar on tax and budget issues on May 17, House Ways and Means Committee Chairman Dave Camp, R-Mich said the agenda for Ways and Means for the remainder of 2102 will be to block expiration of the Bush-era tax cuts, work on comprehensive tax reform and to consider which of the 73 expiring tax provisions (tax extenders) should be extended.
Camp mentioned that the Ways and Means Committee’s framework for comprehensive tax reform to unlock new opportunities for job creation and to strengthen the economy includes bringing the corporate and the individual rate in line at a top rate of 25 percent for each. The Republican members of the House Ways and Means Committee have proposed the following outline for comprehensive tax reform:
- Collapse the six individual tax rates to two rates of 10 and 25 percent;
- Eliminate the AMT, and
- Move from an outdated worldwide system of taxation to a more competitive territorial system
Camp noted that moving to a territorial system, along with a lower corporate rate, is important to having a tax system that encourages companies doing business abroad to bring profits back to the U.S. to invest in their American operations instead of leaving them stranded around the globe.
With respect to tax extenders, Camp said he has charged Chairman Pat Tiberi R-Ohio, of the Select Revenue Subcommittee to have an open review of the tax extenders. Camp said “If extenders are beneficial and are helping the economy, then they should be seriously considered. On the other hand, if an extender has outlived its value, and if it is not producing the economic benefits it once was, then we need to determine whether there is merit in continuing that provision.” Camp said there will likely be another hearing on the tax extenders early in June.
Camp’s agenda seems focused and ambitious. Now comes the hard part; he has to tell the Democrats.
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