Efforts to reform the federal tax code are underway in the United States House and a Nebraska Congressman is involved.
Congressman Adrian Smith co-chairs the Tax Reform Working Group on Financial Services with John Larson, a Democrat from Connecticut; one of 11 bipartisan groups within the House Ways and Means Committee.
Smith says the goal of all the groups is to simplify the federal tax code, freeing up time and money for more productive activity.
“They’ll be able to reduce the cost of compliance and use those dollars to hire people rather than using those dollars to navigate the tax code,” Smith tells Nebraska Radio Network.
Tax reform is the highest priority of the House Ways and Means Committee, according to Smith. And Smith says the committee is convinced that a reform federal tax code can help build the economy well into the future.
“Tax reform” is one of those phrases easy to say in Washington; hard to implement.
Smith insists the Ways and Means Committee is up to the task. He says both businesses and individuals clamor for it, even to the point of sacrificing special tax breaks in exchange for a simpler system.
The Republican Congressman says President Barack Obama, a Democrat, has indicated there is broad agreement on corporate tax reform. Smith says reform of the individual income tax code will prove more difficult. He says reform must move in tandem, because there is quite a bit of crossover between the corporate and individual tax codes, especially among small business owners.
The subcommittee Smith will co-chair will concentrate on how the federal tax code impacts the financial services industry.
“We want to make sure that we’ve got good, forward-thinking tax code that has a good, broad base which would be good for our economy,” Smith says.
AUDIO: Brent Martin reports [:40]