The main goal behind federal tax reform is to form a simplified and transparent taxation infrastructure in the United States. One of the principal initiatives of the President's Advisory Panel for Federal Tax Reform in the United States was for the elimination of the Alternative Minimum Tax (AMT) because it is not being indexed in relation to inflation.
Presently, a number of institutions are functioning in the United States for the purpose of federal tax reforms and they include Americans for Fair Taxation, Americans for Tax Reform and Citizens for an Alternative Tax System. In order to simplify the tax system of the United States, a number of suggestions have been offered to the U.S. Congress, which include different flat tax policies and FairTax.
The President's Advisory Panel for Federal Tax Reform indicated that the present tax structure is highly complicated in nature and it is characterized by the necessity of elaborate bookkeeping, protracted directions, complex forms, account statements and lists. It also mentions that it is imposing a penalty on work and it is not motivating investment and savings. It is also putting up an impediment in the competitive trend of all the businesses in the United States. Usually, the tax code in the United States is plagued by a large number of provisions, which handle taxpayers with same type of situations distinctly and generate sense of partiality or inequity.
It is the sole responsibility of the Government of the United States to fulfill the targets of federal tax reform and in order to accomplish them the U.S. Government is implementing a number of strategies.
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