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'Tax Reform Is Not Dead'
That is what Ways and Means Chairman Dave Camp of Michigan told me this week about his crusade to fix the tax code: "Our House members and our committee are still very enthusiastic about tax reform."
Mr. Camp was responding to a report here last week that the move for tax reform in the House has stalled. The story that tax reform has moved down the list of legislative priorities was later reported by other publications such as Politico.
As for when his committee might release a plan, Mr. Camp hedged his bets. During the summer Mr. Camp had said he expected a plan to be made public for comment "in the weeks ahead," but now he concedes that "we are not quite ready to release a plan." Why? "We were held up by the government shutdown," he explains, adding that "the ObamaCare problems also started to suck oxygen out of the debate."
Mr. Camp also wanted to set the record straight on the tax rates on capital gains and dividends. Last week I reported—based on interviews with sources close to committee deliberations—that these tax rates might inch up to 25% as the price to get corporate and personal income tax rates down.
"No," he states adamantly, "a cap gains tax hike is not going to happen. We think taxes on capital are already too high, as they were under Reagan." The tax rate on capital gains and dividends rose this year to 23.8%, counting the ObamaCare surtax, from 15%.
Regarding a draft plan released recently by Democratic Senate Finance Chairman Max Baucus, Mr. Camp says, "I was pleased with the progress. I don't agree with everything, but it's a start." As for the concern that the GOP shouldn't shift attention from ObamaCare, he's dismissive, "We have to be the party of ideas, opportunity and growth." His goal remains the same: "We want to get the corporate and personal income tax rate down to 25%."
No one doubts Mr. Camp's commitment to tax reform, which he describes as "an economic necessity." On high U.S. corporate taxes, he accurately says that "we're still stuck where the rest of the world was in the 1960s." Whether he is a one man band is yet to be seen.
Tax Reform Is Not Dead
Length: 1 pages (276 Words)
The tax system in the United States is set at a federal level and also at the state level. The several types of taxes in the country include capital gains tax, income tax and sales tax. The federal taxes are separate from the state taxes and each authority taxes its taxes differently. The federal government cannot interfere with state taxes. In the state, several jurisdictions may also exist that charge taxes. Towns and counties may levy school taxes on addition to the taxes charged by the state. The tax system in the United States is very complex.