On February 26th, the House Ways and Means Committee Chairman Dave Camp (R-MI) released a discussion draft aimed at creating a simpler and fairer tax code for small businesses. The goal of Camp's latest draft is to spur greater job creation and higher wages for American workers by reducing the burden the tax code imposes on small businesses.
Congress is back from the holiday recess to begin what the President says "needs to be a year of action." However, the collective assessment is that it will be difficult for 2014 to be more productive from a divided Congress in an election year.
Still, the next 10 weeks may hold some genuine prospects for disproving the conventional wisdom.
In 1986, Congress overhauled the federal tax code, purging it of various exemptions, deductions and credits and using the savings to reduce marginal rates on both individuals and firms. It was a significant change, but over the years Congress and presidents of both parties have proceeded to undo the changes by tweaking the tax code 15,000 times over the last quarter-century. Special breaks, large and small, have crept back into the code during this time.