Saturday, Jan 31, 2015Saturday, Jan 31, 2015

US Republican offers ambitious, but stillborn, tax overhaul

Published on Feb 27, 2014 4:33 AM

WASHINGTON (REUTERS) - The US House of Representatives' top tax writer released a comprehensive tax code overhaul on Wednesday, but it was widely seen as dead-on-arrival in a Congress still deeply divided over fiscal policy.

Michigan's Dave Camp, the Republican chairman of the House Ways and Means Committee, called for simplifying the tax code by sharply reducing both tax rates and many widely used provisions that reduce taxable income.

Reaction was mixed, with analysts saying that the practical short-term impact of the Camp plan would likely be negligible, although it could serve as a model for further debate.

"We're not naive - there won't be tax reform this year," Greg Valliere, chief political strategist at Potomac Research Group, said in a client note.

If you are not a subscriber, you can get instant, unlimited access here