A Taxing Topic: Reform of the Tax Code
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New York, Oct. 4, 2012—President Barack Obama and Republican candidate Mitt Romney sparred over taxes during Wednesday night’s first Presidential debate, each outlining differing views of the impact of tax policy on reducing the deficit and promoting economic growth. According to polls, most Americans believe the U.S. tax system needs an overhaul, but the real debate centers on what that reform should look like.
The Bowles-Simpson plan, proposed by the co-chairs of President Obama’s National Commission on Fiscal Responsibility and Reform, commonly known as the “Deficit Commission,” includes various options that would impose different changes on the tax code. The first option, “The Zero Plan,” would trim or eliminate most tax deductions, devote $80 billion annually to reduce the deficit, and use remaining revenue gains to cut tax rates.