The proposal would also have made a number of changes related to the treatment of tax-exempt entities, tax administration and compliance, and excise taxes. The Tax Reform Act of 2014 would have made substantial changes to the current federal tax system, modifying individual, corporate, and business income taxes, as well as the tax treatment of multinational corporations.

This legislative proposal was preceded by several tax reform discussion drafts, the first of which was introduced during the 112th Congress. In the 113th Congress, then-chairman of the House Committee on Ways and Means Dave Camp introduced the Tax Reform Act of 2014 (H.R. There were, however, reform proposals to replace the income tax with an alternative system or abolish the current system altogether. In the 114th Congress, no comprehensive proposals to reform the individual and corporate income tax systems were introduced. Both of these proposals have been introduced in previous Congresses. 29) would terminate the Internal Revenue Code (IRC) and declares that its replacement meet several criteria regarding simplicity, fairness, and efficiency. These taxes would be effectively replaced with a 23% (tax-inclusive, meaning that the rate is a proportion of the after-tax rather than the pre-tax value) national retail sales tax. 18) would repeal the individual income tax, the corporate income tax, all payroll taxes, the self-employment tax, and the estate and gift taxes. Several proposals have already been introduced in the 115th Congress to replace the current income tax system. In either case, numerous technical details would need to be addressed before either plan could be formulated into legislation. As with most recent tax reform proposals, both of these plans call for lower tax rates coupled with a broader tax base. To assist Congress as it continues to debate the intricacies of tax reform, this report provides a review of legislative tax reform proposals introduced since the 113th Congress.Īlthough no comprehensive tax reforms have been introduced into legislation yet in the 115th Congress, two 2016 reform proposals appear to be at the forefront of current congressional debates-the House GOP’s “A Better Way” tax reform proposal, released in June 2016, and President Trump’s campaign reform proposal, released in September 2016. In doing so, lawmakers confront challenges in identifying and enacting policies, including consideration of competing proposals and differing priorities.

tax system simpler, fairer, and more efficient. Congress continues to explore ways to make the U.S.

Has the us ever had a flat tax