Michigan Republican Dave Camp, who also serves as the House Ways and Means Chairman, recently released a tax reform that would request the lowering of income tax rates for not only most Americans, but most businesses as well. In order to make up the difference, he suggests eliminating large tax breaks as well, in which some major corporations often find loopholes.
Basically, Dave Camp is looking at simplifying the tax code in order to make it much easier for both businesses and citizens to file their taxes.
While Dave Camp is pushing for the tax reform, there is very little chance that the bill will actually hits the floor, simply because this is a mid-term election year.
House Speaker John Boehner did come out and call the bill the beginning of a conversation that lawmakers need to have about tax reform, as it has become so convoluted in recent years, with the Obama administration continually tweaking taxes so the average American citizen now has to pay a higher percentage than what they would have during the previous Bush administration.
However, as of right now, it appears as though lawmakers are in no rush to look over his plan, and there are even suggestions that it might not be touched until 2017.
Tax reforms are rather difficult to do. While congress can easily pass a tax cut, which the president can later ratify, completely changing the tax code all together generally requires support from both sides in order to move it along. The current administration has shown, for the most part, its inability to work with both Democrats and Republicans in order to pass any real laws.
In fact, the Obama administration has generally used the “it’s my way or the highway” method of passing bills, as very few conservative bills have actually passed through congress to be signed off on by the president.
With the current Dave Camp’s bank tax, it would lower the general income tax brackets for individuals, but it would also prevent banks from using the large write offs that allow the banks to save hundreds of millions of dollars a year on the corporate taxes.
It also looks to increase the tax rate on these banks, which has turned off many banks as they have started to lobby against the new bank reform in congress, which is likely to push off the vote even further.