The tax code needs a complete overhaul, but the process of reforming the tax code might be not so easy. Even though most are likely to agree on certain matters such as removing unnecessary complexity that makes the tax code more complicated, some changes might not be agreed upon by all. As taxpayers will feel the impact of the changes, any changes in the tax code will see response from the public as well.
How to reform the tax code is the million dollar question that will not have easy answers. There will be many external factors influencing when and how the tax code is altered, including the election year. Both parties will be careful when voicing their stance on the major changes in the tax code in an election year. There is expected to be a long debate on the changes proposed in the tax reform blueprint made public by the Ways and Means Committee.
The House Ways and Means Committee has proposed reduction in the tax brackets from seven to two. This is expected to simplify the tax system and also reduce the tax differences between different brackets. Similar changes in the tax code are expected to make tax preparation easier for taxpayers. It will also lead to less errors in tax filing and will improve compliance.
The blueprint of the changes in the tax code by the Ways and Means is at the very least a good beginning to a complete overhaul of the tax code and the tax system even if they are not incorporated in the tax code.