Text Resize
Subsribe to RSS Feed

Thursday December 18, 2014

Washington News

Washington Hotline

Chairman Camp – No 2013 Tax Reform or Extenders

At a press conference on December 4, House Ways and Means Chair Dave Camp (R-MI) stated that there will be no tax reform bill in 2013. 
For the past two years, Chairman Camp and Senate Finance Committee Chair Max Baucus (D-MT) have been holding hearings and preparing for major tax reform.  Both taxwriters had hoped to produce draft bills this fall.
However, Camp now stated, “We are running out of time, and I have no plan to introduce the tax bill this year.”  When Camp was asked about the tax extenders, he continued, “They are going to expire.  They have before.”
Camp affirmed a strong desire to continue the tax reform process.  He indicated that the Ways and Means Committee will restart the process in 2014. 
Based on his statement and that of Senator Baucus, the tax extenders such as the IRA charitable rollover and other provisions will lapse on December 31, 2013.  Camp indicated that part of his effort in 2014 will be to eliminate some tax extenders and make a selected number permanent. 
Editor’s Note:  The last major tax reform in 1986 continues to be a blueprint for a potential bill.  The 1986 reform involved a bipartisan bill supported by President Reagan and House Ways and Means Chair Dan Rostenkowski (D-IL).  The effort was also lead by the Department of Treasury.  The current circumstance is quite different and this has been recognized by both Baucus and Camp.  The President and Senate majority prefer a bill that raises $1 trillion in tax.  The House majority would like a revenue-neutral bill.  Camp and Baucus were not yet able to bridge this very large gap.  The White House, Senate and House all agree that the high corporate tax rate is harmful to job growth.  But the change in deductions that is necessary for reducing the corporate and personal tax rates will require strong unified support by the White House, the Senate and the House.

Published December 6, 2013
Subsribe to RSS Feed

Previous Articles