Today is the deadline for submitting formal comments to the Senate Finance Committee in response to Senator Baucus’s taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. 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 recoveryCost recovery is the ability of businesses to recover (deduct) the costs of their investments. It plays an important role in defining a business’ tax base and can impact investment decisions. When businesses cannot fully deduct capital expenditures, they spend less on capital, which reduces worker’s productivity and wages.
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
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