President Barack Obama and House Ways and Means Committee Chairman Dave Camp, R-Mich., both seek a revenue-neutral corporate tax rate reduction. Senate Finance Committee Chair Max Baucus, D-Mont., and Ranking Member Orrin Hatch, R-Utah, have proposed a “blank slate” approach, inviting anyone to tell them why any of the existing 200+ tax breaks should remain in a reformed tax system (6/27/13 press release). These leaders, along with many lawmakers, have lists of tax reforms for both individuals and businesses. A big question, though, is whether anything will really happen. This article describes seven signs or indicators that tax reform may indeed occur in 2014 before the end of the 113th Congress.

1. H.R. 1

H.R. 1 is reserved for tax reform legislation per a February 2013 announcement by House Speaker John Boehner, R-Ohio. The House Ways and Means Committee described this action as “signifying the importance tax reform holds for House Republicans” (House Ways and Means Committee news release, “Tax Reform Gets the Green Light” (2/26/13)).

2. More Than Fifty Hearings Held

At the start of the 112th Congress in January 2011, Camp held what he described as the “first in a series of hearings on fundamental tax reform.” He stated that the hearing was the “beginning of a dialogue that the president and the Congress—both Republicans and Democrats—must have with the American people about broad-based tax reform that will allow families to thrive and employers to create jobs.” Since that first hearing, more than 50 hearings have been held by the House Ways and Means and Senate Finance committees (see author’s website with links to tax reform hearings of the 112th and 113th Congresses). Read More