Congress Should Lay the Groundwork for Tax Reform
The House of Representatives is drafting a tax reform blueprint through its tax reform working group. The Senate Finance Committee is working separately on a plan to integrate part of the corporate tax system with the individual system to reduce the double taxation of corporate income (i.e., the practice of taxing a corporation’s earnings and, when the corporation passes the earnings to stockholders as a dividend, taxing the stockholders on that dividend income). The House and Senate efforts will aid tax reform. Congress should also work on the vitally necessary technical aspects of tax reform this year. If it does, it will greatly increase the chances of tax reform’s success.