Washington Report: Progress on Tax Reform

  

Rep. Adrian Smith

Everyone agrees our federal tax code is complicated, outdated, uncompetitive, and too often favors the politically well-connected.  By simplifying the code we can improve compliance, encourage economic growth, and make our tax structure fairer for all Americans.

This concept sounds simple, but in reality it is very difficult to find agreement on the best way to streamline the code, identify which exemptions to eliminate and which to keep, and to set the tax rates for individuals and businesses.  This goal is further complicated by the sheer size of the tax code – more than 10,000 pages of ever-changing rules.  In the past decade alone there have been more than 4,000 changes to the code; about one per day.   

To accomplish this task, my colleagues on the Committee on Ways and Means and I have been working since 2011 to review the current code and find the best solution.  We have held more than 30 public hearings, conducted 11 bipartisan working groups to review specific sections of the code, and accepted more than 14,000 public comments and ideas from the American people. 

This week, Ways and Means Chairman Dave Camp (R-MI) released a comprehensive draft of tax reform legislation.  This discussion draft is a significant step forward in this process because we now have a specific proposal which can be fully vetted and debated by Members of Congress, and more importantly, by the American people.

This open and transparent process is in stark contrast to previous major pieces of legislation, such as Obamacare, which were crafted behind closed doors, and then rammed through Congress on a partisan basis with little understanding of their content and consequences.  It is not a good idea to pass a law few have read or understand, and without the support of the public.

The purpose of the draft tax reform legislation is to generate discussion and feedback as we continue work on a bill which can be brought to the House floor.  The bill text, section by section summaries, videos and other resources are available at http://tax.house.gov/ .  I hope Third District residents will review these materials and share their thoughts, concerns, and ideas by contacting my office. 

While we must carefully consider tax reform legislation, we cannot expect to get everything we want.  The draft tax reform bill is not perfect.  There are some provisions I would not support on their own.  However, we must look at the big picture and the need to rewrite the code with the support of both parties, and for the benefit of the American people. 

There will always be excuses for not moving forward this needed but difficult priority.  However, after five years of stalled economic growth and 28 years after the last overhaul of the tax code, I believe we must act.  Doing nothing ensures we will keep the current code which everyone agrees is broken.  I look forward to furthering the tax reform process and staying engaged in the discussion and debate.

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Sincerely,

ADRIAN SMITH
Member of Congress