July 28, 2014

Congressman Smith says tax code badly in need of reform (AUDIO)

A Nebraska Congressman says broad-based, fundamental tax reform could grow the economy.

Congressman Adrian Smith says the biggest problem with the federal tax code is how complicated it is.

Another problem, of course, is the loopholes.

“Loopholes are all in the eyes of the beholder, but if we replace some preferences in the tax code, some would call loopholes, if we replace that with lower rates we would have better public policy in place,” Smith says.

Smith serves on the powerful House Ways and Means Committee, which writes tax law.

Smith says any tax code reform would have to officially be revenue neutral, but he says a fairer, simpler tax code would spur economic growth, bringing more revenue into federal coffers.

The congressman says the deal brokered at the end of last year to avoid the so-called “fiscal cliff” took a step in the right direction. Smith says Congress needs to continue that journey this year. He says compliance with the current code has grown too complicated and too costly.

AUDIO: Brent Martin reports [:40]