Signaling his intention to pursue hearings on fundamental 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, Senator Charles Grassley is putting pressure on the Department of Treasury to come forward with a timeline to release their tax reform agenda. In a hearing with Eric Solomon, who has been nominated to fill the long-vacant position of assistant secretary for tax policy, Grassley wanted answers. From Reuters:
“Senate Finance Committee Chairman Charles Grassley, an Iowa Republican, pressed Solomon to tell the panel when Treasury would forward its recommendation to President George W. Bush. The Treasury is working from the recommendations of a bipartisan panel that proposed a series of steps aimed at making the U.S. tax system simpler and fairer, including eliminating many deductions and reducing tax rates.
Solomon said he would need to fully brief new Treasury Secretary Henry Paulson on tax system overhaul proposals before he could say when Treasury’s recommendations would be completed.” [Full Story]
While Mr. Solomon probably didn’t provide Senator Grassley with the definite answers he was looking for, it is encouraging that senior tax-writers are still so interested in the prospect of reviving tax reform. As previous Tax Foundation research has pointed out, the recent large inflows of tax receipts are significantly reducing the budget deficit and this could provide lawmakers with a golden opportunity to consider fundamental tax reform.
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