Congress looking to use tax reform to create jobs

Feb 06, 2012

Aug 30, 2011

Tax code reforms can have a positive impact on job creation and economic growth according to Senate Finance Committee Chairman Max Baucus, D-Mont.

“We need our tax system to stimulate economic development, encourage business activity and promote fairness and certainty while minimizing compliance and administrative costs to taxpayers,” Baucus said. “Improvements to our tax code must support putting Americans back to work and ensure the long-term prosperity of our country.”

During a Senate committee hearing, Baucus examined the tax system’s effect on household and business debt levels. He asked witnesses several questions, including:

  • Whether tax incentives for debt-financing contributed to the financial crisis or hurt the economy in other ways
  • If it’s a problem that large businesses are much more likely to avoid the corporate tax by paying tax as a pass-through business in the U.S. than they are in other countries
  • How the tax code could encourage investors to make sound investments
  • If the tax code could effectively provide individual incentives for savings

The Senate hearing followed a House hearing in the Ways and Means Subcommittee on Select Revenue Measures organized by Chairman Pat Tiberi, R-Ohio, to highlight the need for tax reform for small business pass-through entities.  Dennis Tarnay, CPA, testified on behalf of OSCPA.

“Meaningful tax reform that focuses on simplicity, predictability and fairness, and that includes an emphasis on the related cost and compliance burden to small businesses, is critically important so that we as small business owners seek to do our part to grow the economy,” Tarnay said at the tax reform hearing.