Post on 20-Oct-2014
description
Why so much current talk about tax reform?
Jim GouldTucker Shumack
Sense that our corporate tax system is uncompetitive
• US corporate rate: 35% vs. Average OECD Rate: 26%
• US worldwide system vs. territorial system of most of our major trading partners
Sense the tax code is cluttered and inefficient
• 1987: 128 items on tax expenditure list• 2010: Over 200 items on tax expenditure list
• 1998: 45 temporary tax provisions• 2010: 147 temporary tax provisions
Concern that too many people are exempt
1985: Approximately 20% of individuals paid no income tax
2010: Approximately 50% of individuals paid no income tax
Concern that the high-bracket taxpayers have made out too well
• Top income tax rate: 39.6% in 2000; 35% now
• Rate on capital gains: 20% in 2000; 15% now
• Rate on dividends: 39.6% in 2000; 15% now
• Estate tax: 55% in 2000; 35% now
Concern that the tax system raises too little revenue
• 2010 federal revenue: 14.9% of GDP
• Average federal revenue last 40 years: 18% of GDP
• 2000 federal revenue: 20.6% of GDP