Opportunity for Significant Reform in Tax Code

The potential expiration of the 2017 tax cuts presents Congress with an opportunity to reevaluate and revamp the tax code, aiming towards lowering tax rates to historically low levels. By eliminating various loopholes and unnecessary provisions, there is a possibility to simplify the tax system and reduce tax rates significantly. Embracing a broader view beyond temporary changes, such as passing reforms that are traditionally linked to political advantages, could lead to substantial improvements in tax policy. The proposal suggests removing about $1.5 trillion of annual tax loopholes, potentially resulting in top marginal income tax rates dropping to 25%, corporate tax rates to 12%, and capital gains rates to 15%.