Focus Tax Code Reform on Improving the Economy, Not Punishing Business
Senator Max Baucus (D-Mont.) has been working on legislation aimed at meaningful tax code reform. While word is he will be nominated by President Barack Obama to serve as our nation’s ambassador to China, Sen. Baucus released a draft of where he would like to see tax code reform headed.
Karen Kerrigan, President of the Small Business and Entrepreneurship Council, shared her analysis of Baucus’ initial drafts of tax code reform in Roll Call. Her analysis is best summed up in this quote:
If conducted with an intellectually earnest and results-oriented approach, reforming our tax code will make it easier for businesses — both large and small — to succeed here in the United States and compete abroad. But if reform is determined by piecemeal, punitive or selective policy, businesses will find themselves less competitive than before reform was initiated.
Unfortunately the popularity of “punishing” unpopular industries rules the day when it comes to selling policies that will generate more revenue for the government. In Fort Wayne we have just started to see a downturn in energy costs. While I’m sure they’ll spike again as we get closer to Christmas and holiday travel times, the last thing we need is to pile on more costs.
The reality is that once these measures are put in place the actual burden of these costs are just passed through to consumers, and that in the end, we get punished because Washington legislators and bureaucrats can’t figure out how to balance a budget or control spending. Fortunately, Sen. Baucus’ departure from The Hill sours the prospect of his ideas being enacted, but Majority Leader Harry Reid (D-Nev.) is sure to tap someone who will take Sen. Baucus’s ill-conceived tax code reform ideas and run with them.