A history-making alliance between Sens. Ron Wyden (D-Ore.), Larry Craig (R-Idaho)
and 15 organizations spanning the US political spectrum have pledged to work
together toward a Congressional debate over federal tax reform.
The coalition's campaign is centered around the principles outlined in its
"Cleanse the Code" statement, which contains three broad principles:
Simplification, Transparency, and Certainty; Opportunity for All Americans to
Get Ahead; and Fiscal Responsibility.
"Although we may disagree on the merits of a particular tax reform proposal
(and each may have additional core standards for reform), we do agree that major
reform - much as we saw in 1986 - is needed," the joint statement noted.
The Cleanse the Code effort was conceived by Wyden, who reached out to liberal
and conservative organizations with a long history of involvement in tax issues,
some of whom participated in the 1986 tax reform campaign that broadened the
base of the income tax while lowering and simplifying rates.
The signatories ranged from the Progressive Policy Institute to the American
Conservative Union, from the National Taxpayers Union to Citizens for Tax Justice,
from the Taxpayers for Common Sense to the Center on Budget and Policy Priorities.
"Most taxpayers should be able to calculate their taxes on a single form
or no form at all, and in most cases by themselves, with a few hours or less
of preparation. ... A more transparent tax code would make it easier for individuals
and businesses to pay the taxes that they owe, and for the IRS to help them
comply with their obligations under the Tax Code," the statement continued.
"All Americans deserve a fair tax system that gives them a chance to get
ahead in a marketplace economy. A tax code riddled with loopholes is not fair.
Any reform effort needs to ... ensure that special preferences are not given
to the few at the expense of the many.
"(O)ver the long-term the amount of revenue government collects and spends
cannot be determined independently from each other. As a result of this interplay
of revenue and spending, the goal of tax reform must be pursued in a fiscally
responsible manner."
National Taxpayers Union President John Berthoud, whose organization was part
of the team that assembled the coalition and statement, said that he was encouraged
by the early, bipartisan progress that has been made toward deciding the future
of the Tax Code in 2007.
"Each of our coalition members has a different vision over what our tax
system should look like," Berthoud concluded. "But thanks to Cleanse
the Code, lawmakers from both parties must now recognize that fundamental tax
reform is an ideal shared by taxpayers left and right."
President Bush's Advisory Panel on Federal Tax Reform reported its recommendations
in November 2005. The panel proposed two options: 'Simplified Income Tax Plan
and Growth and Investment Tax Plan. Both plans would see a reduction in the
number of income tax brackets, changes to corporate and investment taxes and
the elimination of the alternative minimum tax.
However, little progress appears to have been made by the US Treasury since
the publication of the tax panel's report towards advancing reform of the tax
code.