On Wednesday, Representative Dave Camp released his plan to make major changes to the federal tax code. A Republican from Michigan and Chairman of the House Ways and Means Committee, Camp introduced the Tax Reform Act of 2014 (TRA), a series of adjustments to deductions, credits, and income tax rates that, if passed, would be the biggest tax reform since the 1986 Tax Reform Act.
But that’s getting ahead of things, because the chances of this bill getting passed this year are slim. Senator Mitch McConnell, Republican from Kentucky, and House Speaker John Boehner have already communicated that tax reform is highly unlikely in 2014. Even so, some, like , see this as the start of a process toward an eventual reform.
Other plans talked about in recent years, like the Fair Tax, the Value Added Tax, and Flat Tax, involve a complete replacement of the current income tax code. Camp’s proposed legislation makes many changes to the Code, but keeps the basic structure intact. That makes a discussion of the details more difficult and easier to distort. In a series of posts to follow, I’ll take a look at the particulars of the bill, and hopefully the result will be helpful.