dc trip 2011 - tax reform
Post on 20-Oct-2014
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![Page 1: DC Trip 2011 - Tax Reform](https://reader033.vdocument.in/reader033/viewer/2022061109/5444d8eaafaf9fdb2b8b4598/html5/thumbnails/1.jpg)
Why so much current talk about tax reform?
Jim GouldTucker Shumack
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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
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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
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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
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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
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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