About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Michael Schuyler, Retroactive Taxation and the Baucus Proposal 1 (2013)

handle is hein.taxfoundation/taxfaaha0001 and id is 1 raw text is: TAX _: 7 ~, FOUNDATION December 9, 2013 No. 405 Retroactive Taxation and the Baucus Proposal By Michael Schuyler Introduction Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, has released a series of staff discussion drafts that suggest numerous changes in international taxation, tax enforcement, and the tax treatment of capital costs.! The centerpiece of the plan is a cut in the federal corporate income tax rate, which is currently the highest among the world's developed economies.2 The draft does not specify the target rate, because that will depend on revenue estimates and refinement of the plan, but Senator Baucus expects it will be under 30 percent. To pay for the lower rate, the plan would expand the definition of taxable income, an action known as base broadening. Senator Baucus hopes the proposals will provide the basis for tax reform legislation. A press release issued by the Senate Finance Committee stated that while this is not a final plan, the staff discussion drafts are intended to spur a conversation about areas where Republicans and Democrats may be able to reach agreement on how to fix the broken tax code.3 1 For a summary of the international tax proposals and links to more detailed information, see Senate Finance Committee, Baucus Unveils Proposals for International Tax Reform, Nov. 19, 2013, http://www.finance.senate.gov/newsroom/chairmanrelease/?id=f946a9f3-d296-42ad-bae4-bcf45 1b34b14. For a summary of the enforcement proposals and links to more details, see Senate Finance Committee, Baucus Unveils Proposal to Combat Tax Fraud, Make Filing Safer, Simpler andMore Efficient, Nov. 20, 2013, htt-:/-,ww.finance.senate.ov/newsroomn/chairman/release/?id a4f8205c- d28--4a4 L-a6l1d-15d1 abd23d3. For a summary of the capital cost recovery provisions and links to more details, see Senate Finance Committee, Baucus Works to Overhaul Outdated Tax Code, Nov. 21, 2013, htt-J/www.financesenate.gvne,,Asroom/chairman/release/?id=536eefeb-2ae2 453f-af9b-946c305d5c93. 2 See William McBride, How Tax Reform Can Address America' Diminishing Investment and Economic Growth, TAX FOUNDATION FISCAL FACT No. 395 (Sept. 23, 2013), httpJ/taxfoundationorL/article/how-tax-reform-can-address-america-s-diminishing investment-and-economic-growth. For a discussion of effective corporate tax rates, which are also among the world's highest, see Phillip Dittmer, U.S. Corporations Suffer High Effective Tax Rates by International Standards, TAX FOUNDATION SPECIAL REPORT No. 195 (Sept. 13, 2011), http://ta.foundation~orL/artcle/us-corporations-suffer-high-effctive-tax-rates-international-standards. See Baucus Unveils Proposals for International Tax Reform, supra note 1.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most