Tax Reform : The Tax System Essay example

780 Words Nov 19th, 2014 4 Pages
Tax Reform in America Tax reform is defined as the process of the government changing the way it collects and manages taxes. Sometimes the goal is to lower taxes for Americans, but other times it is just to simplify the tax system. America is in need of tax reform because the tax system is a complete mess and it has had no major changes in tax codes since 1986. If America had tax reform it would eliminate the loopholes that cause higher tax rates for some people and it would cause the tax rates to fall approximately 44 percent while still maintaining the same revenues. For the past three years there have been two people trying very hard to make tax reform possible in America, Max Baucus (democrat) and Dave Camp (republican). They both agree that Americans truly needs tax reform but they have yet to agree with one another about whether it will raise more revenue; they do agree that they plan to lower tax rates by lowering or eliminating tax breaks. Democrats have the idea that if we were to raise the taxes it would help to eventually lower or eliminate American debt, which is true but it would eventually fail. Democrats also would rather cut the taxes for working families and middle-class families in order to allow the people who need the money the most to have it, especially for those families that have people attending college and those raising children. On the other hand, over half of the Republican Party opposes raising taxes to anyone with a higher income than $250,000…

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