GOP Bill Would Put a Time Bomb on the U.S. Tax Code to Force an Overhaul

Wall Street Journal ^

[Sub-Driver]

GOP Bill Would Put a Time Bomb on the U.S. Tax Code to Force an Overhaul Richard Rubin

What might make Congress revamp the U.S. tax code?

Try picking a date – Dec. 31, 2019 — when the code turns into a pumpkin, says Rep. Bob Goodlatte (R., Va.).

Mr. Goodlatte’s Tax Code Termination Act, which got an airing at a congressional subcommittee on Wednesday, would abolish the entire tax code except for payroll taxes, depriving the government of most of its revenue and the ability to pay for almost any program unless Congress came up with a replacement.

The bill, which has 130 co-sponsors (including one Democrat), is similar to bills passed by the House of Representatives in 1998 and 2000. It also would require a two-thirds majority to change that date, making it harder for Congress to do what it usually does and pass short-term extensions of expiring policies.

[Publius]

Trent Lott tried the same thing in 1995. The tax code is still here.

[martinidon]

Dumb, just do it already! Everyone knows what happens with these “timebombs” Continuing resolutions, Alternative Tax Minimum fix, etc. They will just play the same game and kick the can down the road. Plus Obama will not sign it and as soon as the Republican get finished destroying the party this fall, you know Hilary and the Senate dem majority is not going to bring it up.....

[MichaelCorleone]

Sure.

The WSJ attempting to sell us the Brooklyn Bridge again.

[vette6387]

Rep. Jim Renacci (R., Ohio), wasn’t sold on the idea.
“I’d be extremely concerned that we have a deadline and we don’t have an answer.”

That would be the position of the 300 odd “Outhouse Members,” who just want to keep things as they are until the can can no longer be kicked any further down the road. Renaccis’s constituents should be looking for a replacement THIS YEAR!

[stephenjohnbanker]

A 3rd mortgage on the Brooklyn Bridge.

[Rurudyne]

They need to do it a chunk at a time, over a 1/chunk period of years, and every specific aspect of the tax law needs to be specifically reauthorized (with debate) when its chunk rolls around again or else it sun sets.

This could be sold partly on the principal that it should be taxes that sunset, rather than tax breaks (I.e. taxation need to be justified rather than tax breaks), and also on the idea of breaking it up into more manageable parts ... with the expectation that lazy Congresscritters will over time weary of addressing the tax code and it will begin to simplify if only for that cause alone.

Also, and this is important, the idea of “subsidy” must be legally limited to instances of appropriations, where Congress writes a check to something, and thereby eliminate the idiotic notion that not being taxed is somehow a subsidy.

[Hugin]

Can you say “continuing resolution”?

[Yogafist]

2019? Aren’t they tired of that charade? I get it, vote for us or the Democrats will dismantle it. Of course there is always an excuse for Republicans kicking the can down the road. Is anyone still falling for this nonsense?

[unixfox]

Sure they will.

Just like they used “Lock Boxes”

Pffft....

[grania]

Republicans are SO GOOD at things that won’t happen until the future. As we all know, the future is NEVER the now.

[oldplayer]

My local pub has a sign they put out on the sidewalk announcing FREE BEER!! tomorrow.

[aimhigh]

Don’t expect a positive result. This is one say to shake down the corporations to pay again for existing tax breaks.

[Donglalinger]

Sorry nobody is impressed with your latest gimmick

[The Great RJ]

Tax reform would be immediate with two simple changes: Make the tax due date November 1st. End tax withholding so Americans had to pay their taxes in a single check.

If taxpayers had to write a huge check for their taxes immediately before an election, tax reform would be passed in record time.

[ronnietherocket3]

Congress cannot pass a bill requiring 2/3 of a future congress to overturn the bill.

I suppose what they could do instead is pass a bill requiring a 2/3 majority rather than a simple majority and then each house inserts into its rules a line requiring a 2/3 vote to bring a bill to the floor that would modify the tax code time bomb.

In reality, it would be better if Congress were to overhaul the tax code (or parts of it) every few years.

[Cen-Tejas]

In October 1975, NYC was literally minutes from default and checks bouncing! Indeed some banks had already informed Mayor Beame that they would not cash City workers checks.

Gerald Ford, good for him, told em no!

At the last minute, the Teacher’s Union loaned the City 150,000,000 and saved the City from financial default.

With 20 trillion in borrowed money debt, and 200 odd trillion in liabilities, the US Government is the brokest entity on the face of the earth, indeed the Universe. There is no similarity in human history.