–Sen Baucus: Tax Reform is ‘Long Road’ May Need To ‘Prioritize’ Changes
–Ponders Benefits of Incremental vs Comprehensive Reform

By John Shaw

WASHINGTON (MNI) – Senate Finance Committee Chairman Max Baucus
said Tuesday Congress should “take a crack” at overhauling the federal
tax code, but added it will be a difficult task.

“It’s a long road,” Baucus said during a Finance Committee hearing
on tax reform in which the panel received testimony from several former
assistant secretaries of the Treasury for tax policy.

Baucus openly questioned about the merits of pursuing comprehensive
tax reform versus a more targeted approach. He appeared to signal that
he felt the later approach makes more sense, saying that it is important
to “prioritize” among various elements of tax reform.

Since enactment of comprehensive tax reform in 1986 Congress has
made some 15,000 changes to tax law which have “stretched the code in
different directions,” he said.

Baucus said he continues to be troubled by the so-called tax gap
which he described as a $300 billion annual gap between federal revenues
owed and paid by taxpayers.

Baucus has said his panel will hold a number of hearings on tax
reform, examining the AMT, individual and corporate tax policy as well
as the international competitive consequences of the U.S. tax code.

He has said tax reform efforts must also include the nearly $1
trillion in annual tax expenditures — which some describe as spending
through the tax code.

The Senate Finance Committee, under Democratic leadership, began
holding hearings on tax reform last year. The House Ways and Means
Committee, under Republican leadership, launched tax reform hearings in
January.

President Obama in his State of the Union address called for tax
reform cooperation between Congress and the administration.

It remains unclear if corporate tax reform will be pursued on a
faster track than overall tax reform or if it will be part of the same
effort.

** Market News International Washington Bureau: (202) 371-2121 **

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