The U. S. House of Represen- tative’s tax writing commit- tee, the Ways and Means Committee, recently re- leased its latest version of a tax reform proposal. Within it, Committee Chairman Dave Camp (R-MI) has
made it his goal to simplify the tax code — and make
it easier to understand and comply with — but also
lower the tax burden on American taxpayers and
businesses. Camp’s plan would reduce the number
of tax brackets from seven to three and nearly double the standard deduction amounts.
The plan also proposes to streamline various
family tax benefits as well as simplify higher
education programs. For businesses, the proposal
Recent revisions to a tax reform proposal come at a cost to retailers.
BY JON TAETS
lowers the double taxation of investment income,
repeals the Alternative Minimum Tax (AMT)
and maintains the current estate tax terms ($5.25
million exemption with a 40% tax rate) while also
lowering the corporate tax rate to 25%.
According to a summary provided by the Ways
and Means Committee, the entire plan would not
add to the current budget deficit and would reduce
the size of the American tax code by 25%.
But these benefits do not come without a cost. We
scoured through the proposal and identified a few
areas of concern for NACS members:
n The plan eliminates the commonly used
LIFO (Last In First Out) accounting method.
Starting in 2015, companies would no longer be
able to use LIFO when calculating their taxable