Daily Tax Update - March 17, 2011: Ways and Means Chairman Camp: Cut The Top Tax Rate To 25%

WAYS AND MEANS CHAIRMAN CAMP:  CUT THE TOP TAX RATE TO 25%:  In an interview yesterday, House Ways and Means Committee Chairman Dave Camp (R-MI) said that he wants to cut the top US tax rate to 25% for individuals and corporations, and cut or eliminate many popular deductions.  Camp said, "America needs a tax code that promotes, not prevents, job creation.  Today's code is simply too complex, too costly and too burdensome for families and employers of all sizes to comply with...We need to set ambitious goals and work toward those, because if we don't try that will be the biggest failure of all."  Camp also said, "I really just want to get a goal out there, and begin the discussions and really talk about everything.  We're doing that in committee and we need to continue to do that."  Camp added that the tax code is too complex and that the corporate tax rate is "out of step" with other OECD nations.  Camp added, "I'm going to look at this in a way of everything is open for discussion.  I don't want to start creating a box and either being struck in it or creating a box that you can't get into."  Camp hasn’t introduced a specific plan or timetable for action.  He also has not said which tax breaks would be eliminated.

  • House Majority Leader Eric Cantor said earlier this week that Republicans hope to begin a dialogue on tax reform before Congress leaves for the Easter holiday.
  • Rep. Richard Neal of Massachusetts (D-MA) said that Chairman Camp's proposal faces challenges.  Neal said, "As long as tax reform is offered in the abstract, everyone rallies to the cause.  When it becomes specific, people start to fall off."
  • Camp also outlined his commitment to tax reform in the Committee’s "views and estimates" letter sent yesterday to House Budget Chairman Paul Ryan.  The letter stated, "The Committee recognizes that a complex, burdensome, anti-growth tax code is an obstacle to economic recovery and job creation.  Accordingly, a primary focus of the Committee's tax agenda will be on efforts to simplify and reform the tax code for individuals, families, and employers, with the express purpose of spurring the robust job creation and economic growth necessary to reduce the stubbornly high unemployment rate.  In addition, the Committee will consider appropriate tax relief measures for individual taxpayers, families, and employers, while also closely scrutinizing the revenue recommendations contained in the President's Fiscal Year 2012 Budget."

TAX BILLS INTRODUCED MARCH 16TH:
1.  [112nd] H.R.1124: To amend the Internal Revenue Code of 1986 to impose increased rates of tax with respect to taxpayers with more than $1,000,000 taxable income, and for other purposes.
Sponsor: Rep Schakowsky, Janice D. [IL-9] (introduced 3/16/2011)      Cosponsors (9)
Committees: House Ways and Means
Latest Major Action: 3/16/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

2.  [112nd] H.R.1139: To amend the Internal Revenue Code of 1986 to provide that tips shall not be subject to income or employment taxes.
Sponsor: Rep Paul, Ron [TX-14] (introduced 3/16/2011)      Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 3/16/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

3.  [112nd] H.R.1140: To amend the Internal Revenue Code of 1986 to repeal taxes on the income of senior citizens and to improve income security of senior citizens.
Sponsor: Rep Posey, Bill [FL-15] (introduced 3/16/2011)      Cosponsors (4)
Committees: House Ways and Means; House Energy and Commerce
Latest Major Action: 3/16/2011 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

4.  [112nd] S.593: A bill to amend the Internal Revenue Code of 1986 to modify the tax rate for excise tax on investment income of private foundations.
Sponsor: Sen Schumer, Charles E. [NY] (introduced 3/16/2011)      Cosponsors (11)
Committees: Senate Finance
Latest Major Action: 3/16/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance

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