DC Trip 2011 - Tax Reform

514 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
514
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

DC Trip 2011 - Tax Reform

  1. 1. Why so much current talk about tax reform?    Jim Gould Tucker Shumack  
  2. 2. Sense that our corporate tax system is uncompetitive <ul><li>US corporate rate:  35% vs. Average OECD Rate: 26% </li></ul><ul><li>US worldwide system vs. territorial system of most of our major trading partners </li></ul>
  3. 3. Sense the tax code is cluttered and inefficient <ul><li>1987: 128 items on tax expenditure list </li></ul><ul><li>2010: Over 200 items on tax expenditure list </li></ul><ul><li>1998: 45 temporary tax provisions </li></ul><ul><li>2010: 147 temporary tax provisions </li></ul>
  4. 4. 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
  5. 5. Concern that the high-bracket taxpayers have made out too well <ul><li>Top income tax rate: 39.6% in 2000; 35% now </li></ul><ul><li>Rate on capital gains: 20% in 2000; 15% now </li></ul><ul><li>Rate on dividends: 39.6% in 2000; 15% now </li></ul><ul><li>Estate tax: 55% in 2000; 35% now </li></ul><ul><li>      </li></ul>
  6. 6. Concern that the tax system raises too little revenue <ul><li>2010 federal revenue: 14.9% of GDP </li></ul><ul><li>Average federal revenue last 40 years: 18% of GDP </li></ul><ul><li>2000 federal revenue: 20.6% of GDP </li></ul>

×