Columns

Blaine's Bulletin: A Simpler, Fairer Tax Code

Tax day is around the corner and with it comes a reminder that our tax code remains far too complicated for most Americans. I have long believed that Americans need a tax system that rewards hard-work, investment, and innovation. As it stands now, our nearly 75,000 page tax code is a nightmare.

Tax day is around the corner and with it comes a reminder that our tax code remains far too complicated for most Americans. I have long believed that Americans need a tax system that rewards hard-work, investment, and innovation. As it stands now, our nearly 75,000 page tax code is a nightmare.

Congress has made some incremental steps since last year on the road to tax reform. The first important step took place late last year, when Congress came together and approved a tax extenders package which marked a big step in providing certainty to businesses. This law, the Protecting Americans from Tax Hikes (PATH) Act, will provide more than $500 billion dollars in tax relief to American families and small businesses over the next decade. Importantly, this legislation made a number of tax provisions permanent, and other ones that expired every year were renewed for five years: the research and development tax credit is now permanent, as is the section 179 expensing tax credit, and bonus depreciation is extended for five years.

People rightly ask how making permanent and extending the life of existing provisions of the tax code sets us up for tax reform in the future. The answer is that when provisions are expiring every year, lawmakers will only focus on preventing those tax hikes which are immediately scheduled to take place. Making provisions permanent and even extending others for five years changes the debate to the long term. No longer can the immediate expiration of one section of the tax code be leveraged into extending many other provisions without reform.

In addition, permanent tax law can be analyzed for the long-term in a way that Washington’s arcane budget and revenue projections prohibit for more temporary sections of the tax code, even when they are renewed year after year. This, too, allows us to make a step forward on the road to reform.

I believe a good way to force reform of our tax system is to terminate the entire Internal Revenue Code and require its replacement by a set deadline. That is why I am a cosponsor of the Tax Code Termination Act which would abolish the Internal Revenue Code by December 31, 2019. I have been a long-time supporter of this legislation because it would allow our nation, as a whole, to collectively decide what the new tax system should look like. My hope is that it would lead to a simpler, fairer system for American families, workers, and businesses.

More immediately, with April 15 quickly approaching, if you find yourself having any issues with the IRS, my staff is holding Constituent Service Days in each of the 13 counties in the 3rd Congressional District. For all the information about times and where they will be held, please visit my website at luetkemeyer.house.gov.

As your voice in Washington, I will continue to fight against job-killing tax increases and support legislation that will create jobs and keep your money in your pocket. In doing so, our economy will receive a boost and will start to end our growing dependence on the federal government.