Responses to Senator Baucus’s Staff Discussion Drafts

Today is the deadline for submitting formal comments to the Senate Finance Committee in response to Senator Baucus’s tax reform staff discussion drafts.

Following the release of the drafts, we produced a series of research and analysis on the content of the discussion draft.

Generally speaking, we found that the tax reform proposals in these drafts go in the wrong direction. Our modeling shows that they damage economic growth, hurt investment, and, in many instances, violate the principles of sound tax policy: simplicity, transparency, neutrality, and stability.

We believe that economic growth should be the focus of tax reform. A plan that focuses on the core principles of sound tax policy can grow the economy and improve the standard of living for all taxpayers in America.

Included below is the collection of research and analysis we produced in response to Senator Baucus’s staff discussion drafts.

Overview

Baucus Offers Ways to Pay for a Lower Corporate Tax Rate

International

Summary of Baucus Discussion Draft to Reform International Business Taxation

Baucus International Tax Plan is Uncompetitive

Infographic: International Tax Systems in the OECD Compared to Baucus Plans

Cost recovery

Summary of Baucus’s Proposed Changes to Cost Recovery

Senator Baucus’s Plan for Cost Recovery Heads in the Wrong Direction

What Should Capital Cost Recovery Ideally Look Like?

Retroactivity

Retroactive Taxation and the Baucus Proposal

Forbes Op-Ed: Senator Baucus Tax Draft Violates Principle of Sound Tax Policy

Tax Administration

Baucus Administrative Reforms Target Bank Accounts as a “Closing the Tax Gap” Measure

Energy

Baucus’s Energy Discussion Draft Misses the Point of Fundamental Tax Reform