To make good on campaign promises, and perhaps to make the sequester an easier pill to swallow, Republicans and Democrats are due to meet to completely revamp the U.S. Tax Code. This preliminary attempt at overhauling the Code, which was last overhauled in 1986, will begin with an attempt to close hot button issues like tax loopholes, and make changes for small businesses.
A panel is working in the House of Representatives, and Dave Camp, the chairman of the tax writing Ways and Means Committee, is expected to lay out, this week, a draft of potential changes for small businesses. During the election, both parties discussed a need to close tax loopholes; however they disagree on what constitutes one.
There are big challenges for Congress as they begin these talks. The two parties are far apart on basics such as whether the change in the Code should raise revenue, and whether money that would be gained from closing loopholes should be used to fund lower rates or be used to cut the deficit. In early January, lawmakers passed legislation that averted the so called “fiscal cliff,” but that legislation just kicked the problem down the road.
This isn’t the first time that Congress has discussed changing the Tax Code, so we will see what happens.
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If you have any questions you can email Craig W. Smalley E.A.
Author of the books: It Starts With an Idea – Tax Tips for Small Businesses, The Ultimate Real Estate Investor Tax Guide, The Complete Guide to the New Tax Law – American Taxpayer Relief Act of 2012, Everything You Wanted to Know about the IRS – Audits, Appeals and Collections, Tax Avoidance is Legal! The Complete Guide to Individual Income Tax, The Complete Guide to the Affordable Care Act’s Tax Provisions, The Complete Guide to Retirement Plans for Small Businesses, The Complete Guide to Estate, Gift and Trust Taxation, The Complete Guide to Hiring an Accountant, The Complete Guide to Subchapter S-Corporations,, and Free Money. All available exclusively on Kindle
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