WASHINGTON (6/13/12)--Revising the tax code to promote competitiveness, innovation and opportunity, and creating jobs from broad-based growth will be "at the heart" of an upcoming tax reform plan, Senate Finance Committee Chairman Max Baucus (D-Mont.) said in remarks made this week.
The current Bush-era tax rates are set to expire on Jan. 1, 2013, and the Obama Administration and legislators are preparing for that expiration.
Speaking before the Bipartisan Policy Center in Washington this week, Baucus has suggested that Congress could take up tax issues in the so-called lame duck session following November's elections. He met with Senate Democratic colleagues on tax issues, and has scheduled a private meeting of his Senate Finance Committee colleagues this week, The New York Times reported.
House Ways & Means Committee Chairman Dave Camp (R-Mich) has also discussed his own tax reform priorities in recent weeks, and Camp suggested extending current tax rates for a further six months.
Baucus said Congress "needs to take a hard look at each and every expiring provision to decide which to make permanent and which to eliminate… We need to get out of the way of the market, unless there is clear evidence that a tax expenditure spurs growth and creates jobs."
Baucus added that the tax code should encourage U.S. companies to keep jobs "here at home," should bolster innovation, and keep up with changing social and business environments.
"Every tax provision needs to prove it has a tangible benefit to our economy or society. If not, it doesn't belong in the tax code," he added.
The tax-exempt status of credit unions has not been mentioned in any of the current reform discussions. However, preserving the credit union tax status is a top Credit Union National Association (CUNA) priority, and CUNA will remain engaged and vigilant as tax reform discussions move forward.