Tax Reform ‘Imperative’

SEN. HATCH: ‘Our Tax Code Is A Huge Obstacle Standing Between Us And Continued Prosperity’

SEN. ORRIN HATCH (R-UT): “Our tax code is a huge obstacle standing between us and continued prosperity.  The costs of compliance alone are staggering.  And, those costs are nothing compared to the economic distortions created by a tax system that, far too often, picks winners and losers.  I believe this is true of both the individual tax system as well as the business tax system.  That is why I have repeatedly called for a comprehensive approach that fixes the tax code for individuals and families as well as corporations and small businesses.” (“Comprehensive Tax Reform For 2015 And Beyond,” P.iv, 12/2014)

• HATCH: “We need a tax system that achieves the goals of fairness, efficiency and simplicity – not for an economy in 1913 or even 1986 – but rather for the global economy of 201[7] and beyond.”  (“Comprehensive Tax Reform For 2015 And Beyond,” P.17, 12/2014)

America In 1986 Was Vastly Different Than Today’s America

“The last major tax reform in the United States was the Tax Reform Act of 1986, which was signed into law by President Ronald Reagan on October 22, 1986.” (“Comprehensive Tax Reform For 2015 And Beyond,” P.20, 12/2014)

TAXPAYER ADVOCATE SERVICE: “It has now been more than 30 years since Congress enacted the Tax Reform Act of 1986 to substantially simplify the tax code, and since that time, the code has grown more complex by the year, as evidenced by the fact that Congress has made more than 5,900 changes to the code — an average of more than one a day — just since 2001.” (U.S. Taxpayer Advocate Service, “2016 Annual Report To Congress: TAX REFORM: Simplify the Internal Revenue Code Now,” P.305, 2016)

The Overall Economy Is 50% Larger, With International Business Playing A Much Larger Role

“1986 Gross Domestic Product: 4,590.2 [billion dollars in 1986 dollars],” or $10,240.56 in today’s dollars.

(Bureau of Economic Analysis, U.S. Commerce Department, Table 1.1.5, Accessed 6/2/2017)

• “2016 Gross domestic product (GDP): 18,569.1 [billion dollars]” (Bureau Of Economic Analysis, “Gross Domestic Product: First Quarter 2017; Table 3,” 5/26/2017)

Trade as a percentage of U.S. GDP in 1986: 17%

• Trade as a percentage of U.S. GDP in 2015: 28% (“Trade (% of GDP),” The World Bank, Accessed 6/13/2017)

The U.S. Population Is One Third Larger, With 80 Million More Americans

In 1986 the population of the United States was 243,400,000 (U.S. Census Bureau, “Statistical Abstract Of The United States 1988,” P.Xvii, 12/1987)

• As of June 1, 2017, current population estimated to be 325,150,902 (U.S. And World Population Clock,” U.S. Census Bureau, 6/2/2017)

TAXPAYER ADVOCATE: ‘Simplify The Internal Revenue Code Now’

TAXPAYER ADVOCATE SERVICE: “TAX REFORM: Simplify the Internal Revenue Code Now …viewing the tax code strictly from the perspective of minimizing taxpayer burden, there is no doubt: Simpler is better!” (U.S. Taxpayer Advocate Service, “2016 Annual Report To Congress: TAX REFORM: Simplify The Internal Revenue Code Now,” P.319, 2016)

• TAS: “A simpler, more transparent tax code will substantially reduce the estimated six billion hours and $195 billion that taxpayers spend on income tax return preparation; reduce the disparity in tax liabilities between sophisticated or well advised taxpayers and other taxpayers; enable taxpayers to understand how their tax liabilities are computed and prepare their own returns; improve taxpayer morale and tax compliance, including the level of connection that taxpayers feel with the government; and enable the IRS to administer the tax system more effectively and better meet taxpayer needs.” (U.S. Taxpayer Advocate Service, “2016 Annual Report To Congress: TAX REFORM: Simplify the Internal Revenue Code Now,” P.324, 2016)

TAS: “If tax compliance were an industry, it would be one of the largest in the United States.  To consume six billion hours, the ‘tax industry’ requires the equivalent of three million full-time workers.” (U.S. Taxpayer Advocate Service, “2016 Annual Report To Congress: TAX REFORM: Simplify the Internal Revenue Code Now,” P.310, 2016)

TAS: The Internal Revenue Code consists of some “four million words.” (U.S. Taxpayer Advocate Service, “2016 Annual Report To Congress: Special Focus: IRS Future State,” P.2, 2016; Counted Through 12/12/2016)

• “Great Novels and Word Count: Leo Tolstoy; War and Peace; 587,287” (“Great Novels And Word Count,” Indefeasible.Wordpress.Com, 5/3/2008)