Posted: Aug 22, 2013 4:19 PM by Marlee Banks - MTN News
Senator Max Baucus met with his Tax Reform Advisory Council to get ideas about how to improve the federal tax code on Thursday.
Senator Max Baucus' Tax Reform Advisory Council was created to come up with ideas about how to reform the federal tax code.
With over 74,000 pages, Baucus said it was time to entirely scrap the old document and start over.
"Our tax code is dated, there hasn't been significant tax reform since 1986," Baucus said.
The Council - made up of diverse interests - presented Baucus with five guiding principles.
They want the new code to be simpler, fairer, have lower rates and cut the deficit, create certainty and jobs and promote the economy.
"Everybody agrees that they want it simpler and fairer, but the question is how do you implement that?" Lewistown C.P.A. Russ Spika said.
That's the million, or should we say trillion dollar question.
The Council pointed out that tax deductions cost the federal government over one trillion dollars every year.
They said some of these deductions are worthwhile, but others need to go.
"Low income families should be protected in some way, and narrow preferences, loopholes and deductions and special carve outs should be repealed," Jane Karas, Flathead Valley Community College President, said.
The Council was divided on whether or not reforming the tax code should generate revenue.
And Senator Baucus believes it should.
"I do think, to pass, there is going to have to be some additional revenue," he said.
Baucus said he is going to take every suggestion back to Washington and try to get a bill passed out of the Senate Finance committee by this fall.