The document discusses the current interest in tax reform for several reasons: the US corporate tax rate is higher than other countries, the tax code has become more cluttered and inefficient over time with more temporary provisions, more people are exempt from paying income tax compared to the past, and tax rates have decreased for high-income individuals while tax revenue as a percentage of GDP has declined.

1. Why so much current talk about tax reform? Jim Gould Tucker Shumack

2. 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

3. 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

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. 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

6. 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