WASHINGTON (AP) – Congressional Republicans are planning a massive overhaul of the nation’s tax system, a heavy political lift that could ultimately affect families at every income level and businesses of every size.
Their goal is to simplify a complicated tax code that rewards wealthy people with smart accountants, and corporations that can easily shift profits – and jobs – overseas. It won’t be easy. The last time it was done was 30 years ago.
Senate Majority Leader Mitch McConnell, R-Ky., and Speaker Paul Ryan, R-Wis., have vowed to pass a tax package in 2017 that would not add to the budget deficit. The Washington term is “revenue neutral.”
It means that for every tax cut there has to be a tax increase, creating winners and losers. Lawmakers would get some leeway if non-partisan congressional analysts project that a tax cut would increase economic growth, raising revenue without increasing taxes.
Nevertheless, passing a massive tax package will require some tough votes, politically.