Congress is currently looking at restructuring the tax system in an effort to lower rates by broadening the revenue base. Both the House Ways and Means Committee and the Senate Finance Committee have been holding hearings on tax policy and simplification of the code.
Carmen Group has been following those hearings closely to ensure that we are familiar with the concerns of each member of the tax writing committees. We have also been talking with the Administration to keep abreast of how they are approaching the issue.
While tax reform has been part of the budget debate – calls for reform/restructuring of the tax system have been included as part of the President’s Deficit Commission, the Senate “Gang of Six”, and the Ryan Budget proposal -- most observers believe that tax reform will be overshadowed by the deficit reduction debate until after the 2012 elections. However, the hearings and discussions that take place over the next two years will serve as the basis for tax reform legislation when Congress does act. Because of the extensive turn over on the tax writing committees, it is critical that those who are concerned about the preservation of given tax incentives take the opportunity to educate members about the efficiency and positive economic impact of those provisions. On behalf of our tax clients, we have been undergoing an extensive effort to educate members and committee staff and will continue to do so during the 112th Congress.