Tax Reform Proposal Would Raise Federal Revenues By $86.4B

Republican Dave Camp's plan would also grow the economy by $3.4 trillion over the next decade, according to the Joint Committee on Taxation.
Photo/TRNS

Photo/TRNS

(TRNS) — Rep. Dave Camp (R-Mich.) unveiled legislation today aimed at simplifying the country’s tax code.

A Joint Committee on Taxation estimate of the plan shows that it will grow the U.S. economy and raise revenues for the federal government by reducing top rates paid by businesses and individuals.

It would treat investment income as ordinary wage income, and would consolidate several tax credits, such as those applied to education expenses.

Camp’s plan would increase the standard deduction and child tax credit, and would levy a new basis-point tax on big banks and insurance companies with assets exceeding $500 billion per year.

Politically speaking, the likelihood of Camp getting his plan approved is dim. As Senate Minority Leader Mitch McConnell (R-Ky.) noted Tuesday, Democrats won’t be eager to support a plan that doesn’t raise hundreds of billions of dollars in new revenue.

When asked about the legislation today, White House Deputy Press Secretary Josh Earnest called it a ”constructive, specific proposal,” but one that is unlikely to become law anytime soon.

“There’s not a great about of optimism on Capitol Hill for any kind of legislative proposal that seems complicated,” he said. “There is no doubt that, by any definition, reforming a tax code, particularly the business tax code, is complicated.”

Earnest said President Obama was pleased that Camp’s proposal treats carried interest as wage income instead of investment income, ends tax breaks for corporate jet owners and closes “a series of other unfair tax loopholes that don’t contribute to long-term economic growth.”

However, the spokesman expressed unhappiness over the fact that the plan does not raise taxes enough to reduce the country’s deficit. “That’s a source of some concern,” Earnest said.

The White House also opposes Camp’s plan to retire the Earned Income Tax Credit, which benefits low and moderate income working individuals and couples, particularly those who have children.

“The president believes that our tax system should reward hard work and one way we can reward hard work is to extend and expand the EITC,” Earnest said. “And, quite frankly, this does not seem like a very good time to be raising taxes on working people. That’s another aspect of Congressman Camp’s proposal that we do not agree with.”

Over in the House, Speaker John Boehner (R-Ohio) is not saying definitively whether he supports Camp’s bill.

“It’s time to have a public conversation about the issue of tax reform,” he said today. “This is the beginning of the conversation.”

Boehner Not Ready To Endorse Camp’s Tax Bill by Talk Radio News Service

Click here to read Camp’s summary of the bill, which he wrote for the Wall Street Journal. And click here for an analysis of the plan by the Atlanta Journal-Constitution.

In related news, a Senate investigative panel is out with a new report showing how thousands of Americans funneled billions of dollars into Switzerland from 2001 to 2008 in order to evade paying taxes on their earnings.

According to the U.S. Senate Permanent Subcommittee on Investigations, ”Credit Suisse opened Swiss accounts for over 22,000 U.S. customers with assets that, at their peak, totaled roughly $10 billion to $12 billion, the vast majority of which were hidden from U.S. authorities.”

“The Credit Suisse case study shows how a Swiss bank aided and abetted U.S. tax evasion, not only from behind a veil of secrecy in Switzerland, but also on U.S. soil by sending Swiss bankers here to open hidden accounts,” said committee Chairman Carl Levin (D-Mich.).

Levin is accusing the U.S. Justice Department of dragging its feet when it comes to collecting back taxes from those who sheltered their earnings in Switzerland.

DC Bureau Footer

Tags: ,

Geoff Holtzman
Geoff Holtzman is Talk Radio News Service's Deputy Bureau Chief. As one of TRNS's primary correspondents, he helps cover the White House and Capitol Hill. Geoff also covered the 2012 presidential campaign, following the candidates to Iowa, New Hampshire, South Carolina, North Carolina, Florida and elsewhere. In the process, he learned that not all Motel 6's are created equal. Follow Geoff on Twitter @Geoff_Holtzman.
  • skeeteril

    Of course the government would say, “how a Swiss bank aided and abetted U.S. tax evasion”, but like one state goes to another looking to attract business, their business model was more attractive to Americans.

    Maybe if American taxes were simplified and didn’t cater to those with huge income, more would just come home, pay their fair share and be over and done with it.

    Just might add a few jobs to the US workforce also.

  • Al B.

    I am a FDR loving, card-carrying liberal and I am totally for this tax reform package. True, I would like to see a more progressive tax policy but this plan looks so elegant and reasonable: it simplifies the tax code, raises revenue, cuts our high corporate income tax and, most importantly, taxes unearned income at the same rate as earned income. The only reason I can see dems fighting this is because it wasn’t their idea. This is just like healthcare reform: although Obamacare was born of conservative ideas-specifically the individual mandate, republicans fought it tooth and nail because it was penned by a democratic president. I think democrats would have done the same if the same idea was put forward by McCain or Romney.

    The fact of the matter is you can’t have two political parties who treat each other like mortal enemies. Reasonable ideas are reasonable ideas no matter who thinks them up.

Canadian Parliament On Lockdown Amid Manhunt For Shooter

800px-Flag_of_Canada.svg

According to local media reports, a man armed with a rifle opened fire at a location near the Canadian Parliament and at the front doors of the Parliament itself.

Poll: Scott, Crist Deadlocked In Florida Less Than Two Weeks Out

Photo: Geoff Holtzman/TRNS

A poll shows the two candidates deadlocked at 42 percent each in the race for Florida’s governorship.

TRNS News Notes- 10/22

Midterm Madness: Meany debates
U.S. ramps up Ebola screening
Ebola czar meets with Obama today
WaPo former editor Ben Bradlee dies at 93
ISIS seize U.S.-dropped weapons
Did Panetta violate CIA secrecy agreement?

Click here for: Wednesday, October 22

● Court affirms cap-and-trade pollution plan

● Court lifts immigration bar to Brazilian chefs

● Physician aide draws 15-year term for fraud

● Where ideologues get the news

● FCC targets political robocalls

● San Francisco’s landlord tax is rebuked

LISTEN: The Day Ahead – October 21, 2014

The Day Ahead Logo

The last chance to catch Halley’s Comet for the next 47 years, the U.N. Security talks piracy in Somalia and Jimmy Choo lists on the London Stock Exchange.

LISTEN: The World in 2:00 – October 21, 2014

The World in 2:00 continents logo

London orders surveillance flights over Syria and Qatar earns a spot on the U.N.’s Human Rights Council.