On Tuesday, the Senate Finance Committee conducted a hearing on the progressivity of the tax code with a three-witness panel of former economic advisors. Steve Rattner suggested eliminating carried interest for money managers as well as raising tax rates on capital gains since recent studies show that investments would not be discouraged. Deroy Murdock called for cutting the corporate tax rate at least to 25 percent, as well as instituting a 5 percent tax on repatriation of $2.1 trillion in offshore profits.
In advance of the hearing, Ranking Member Ron Wyden (D-Ore.) released a report detailing a number of strategies sophisticated taxpayers use to substantially lower their tax burden. “How Tax Pros Make the Code Less Fair and Efficient: Several New Strategies and Solutions” benefited from contributions by the Joint Committee on Taxation (JCT) and outside experts at the request of Wyden and his staff. The full report can be found here. The report lays out regulatory steps President Barack Obama should take to eliminate top earners' tax avoidance through financial products like derivatives as well as deferred compensation.
The Finance Committee announced a tax reform hearing for March 10 on compliance and simplification of the tax code with four witnesses scheduled to appear including: Carol Markman, Certified Public Accountant; Dr. Mihir A. Desai, Professor, Harvard University; Bruce Bartlett, Former Deputy Assistant Secretary for Economic Policy; and T. Keith Fogg, Professor, Villanova University.
For more information, please contact Brian Lenihan at lenianb@agc.org or (202) 547-4733.