The complexity of the tax code is felt during the tax filing season. Democrats and Republicans both agree that the U.S. tax code needs to be simplified. The resolve is present, but the pressing question is how?
Both the parties share the common goal, but have different paths to reach it. House Republicans and Senate Democrats express different views over most tax policies. Members of the Senate Finance Committee are laying the groundwork for a complete overhaul of the tax code where all unnecessary complexity and loopholes will be considered for removal or amendment. There has also been a proposal to close down special-interest loopholes, as well as many existing tax breaks under reviewed.
The danger of politics mixing with economic reforms is apparent. Many find it tough for both parties to come together and agree on a bipartisan tax reform plan that could effectively solve the problem of a burdening tax code. The last time the tax code faced an overhaul was more than a quarter of a century ago, and while there is a grave need to simplify the U.S. tax code, there is an even greater need to do it right.