Wednesday, March 3, 2010

Wyden, Gregg propose tax code overhaul

Two senators worked across party lines to develop a proposal to overhaul the tax code and rebuild it around a broader tax base and lower rates.

Sens. Ron Wyden (D-Ore.) and Judd Gregg (R-N.H.) contend they can build support for the measure by emphasizing the job-creation benefits of a simpler tax system.

Their plan, which isn't likely to go anywhere in this election-shortened legislative year, nonetheless could help frame the debate when Congress does get ready to tackle a tax overhaul.

It would lower the top corporate tax rate from 35 percent to 24 percent and would keep the top individual rate at 35 percent, even as most Democrats propose letting the top rate rise to 39.6 percent in 2011. It would also repeal the alternative minimum tax, triple the standard deduction and retain popular deductions for home mortgage interest and charitable contributions.

To offset the revenue lost through such moves, the senators would trim or eliminate dozens of preferences built into the tax code, especially those benefiting multinational corporations.

"We can take on a host of the special interests and write legislation that gives all Americans — individuals, businesses, all Americans — an opportunity to get ahead," said Wyden.

Congress.org

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