The IRS scandal could lead to tax code reform that simplifies the laws and perhaps even lowers taxes.
Representative David Camp, the Michigan Republican who chairs the tax-writing House Ways and Means Committee, believe the IRS scandal should lead to tax code reform:
“The complexity of the law didn’t require the IRS to target people for their political beliefs. I think giving the IRS less discretion is going to be important, and that’s what a simplified code would do.”
Other republicans claim, “If you want to diminish and limit the power of the IRS, you have got to reduce the complexity of the tax code and take them out of it.” Tax code reform is needed because people “often find loopholes that enable them to reduce or eliminate their tax liabilities.”
House Budget Committee Chairman Paul Ryan says the known facts about the IRS scandal are “just chilling.” Paul Ryan believes the IRS scandal should prompt discussion about tax code reform as well:
“The kind of spending cuts we’re talking about right now aren’t even actually cutting spending. It’s just slowing the growth of spending increases. You’ve had ‘the sequester,’ which just deals with a small part of government—about 2 percent of the spending overall.”
The good news is that taxes have increased greatly in addition to the two percent in spending cuts, with the Congressional Budget Office projecting a $642 billion federal deficit for fiscal year 2013. While that’s still not good, it’s far better than the $1 trillion plus overspending the last few years have seen. Since the average global corporate tax rate is 25 percent, and the US business tax rate is 35 percent, Paul Ryan believes we need “to make sure we have an international tax system that is in sync with the rest of the industrialized world.”
Do you think the IRS scandal could lead to tax code reform?