The convergence of two circumstances has made tax reform “somewhat more likely” in the months ahead, says Brian Graff, CEO/Executive Director of ASPPA and NAPA.
In this month’s Washington Update video, Graff notes that Congress will have to revisit the issue of raising the debt ceiling, likely before summer’s end. Efforts are underway on Capitol Hill to link tax reform to an increase in the debt ceiling. For House Republicans, this opens the door to a deal. “The rub,” Graff says: “Will they will be willing to take on some more taxes if they get a lower income tax rate in return?”
In the Senate, meanwhile, the political dynamics have changed in the wake of the recent announcement by Senate Finance Committee Chairman Max Baucus (D-MT) that he will retire at the end of this session of Congress — that is, the end of the year. “This means that he will be much more willing to work with Democrats in the Senate to agree on a procedure for tax reform and a target number for new tax revenue,” Graff believes.
To watch the Washington Update for May, click on the video to the right.
