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Senator Baucus Launches Website to Give Working Families, Small Businesses a Voice in Tax Reform Debate

Senator Teams Up with Republican House Counterpart in Effort to Make Tax Code Simpler, More Fair

Montana U.S. Senator Max Baucus today bolstered his work to bring transparency and public participation to his efforts to close corporate loopholes and create a simpler, more fair tax code. As Chairman of the Senate’s tax-writing committee, Baucus teamed up with his House Republican counterpart, Dave Camp of Michigan, to launch http://www.TaxReform.gov – a new website where working families and small businesses can share their ideas for tax reform.

Earlier this year, Baucus formed a working group of 15 Montanans http://www.baucus.senate.gov/?p=press_release&id=1270 from various industries across the state to advise him and provide feedback on legislative proposals that may be considered, and he issued a call to action asking all Montanans to weigh in. Today’s website will provide a broader platform for all Americans to engage in an open and transparent debate.

"Our tax code hasn’t been updated in 30 years, and it’s full of dead wood and red tape that hurts working families and small businesses and slows down our economy. Tax reform is about making the tax code simpler and fairer. It’s time to cut out loopholes and bring tax rates down," Baucus said. "We’ve got to get this done and we’ve got to get it right. That means Congress needs to hear directly from the working families and small businesses who will be impacted by changes. That’s what TaxReform.gov is all about, and I urge folks to submit their ideas so we can make sure Montanans are heard in this debate."

Today’s website also incorporates many Twitter tools that allow the public to weigh in by following @simplertaxes.

The idea is based on efforts of former Ways and Means Chair Dan Rostenkowski to engage the American public in the last successful overhaul of the U.S. tax code in 1985. He encouraged the American public to send letters in support of tax reform in what became known as the "Write Rosty Campaign." As a result, Rostenkowski received more than 75,000 letters and post cards from the American public in support of tax reform, helping lead to the Tax Reform Act of 1986.

Baucus and Camp have recreated the outreach effort with a 21st century twist. Visitors to the web site can learn about tax reform and submit ideas on how to improve the tax code. The site has been built around three sections: Why reform the Tax Code? What’s already underway? Share your story and ideas.

The site also provides a library of material detailing the efforts by Baucus and Camp over the past two years as they have developed comprehensive tax reform proposals.

Quick Facts on the Tax Code

It has been nearly 30 years since the last time the tax code was updated in 1986. Since then, more than 15,000 statutory changes have been made. It now contains four million words and would take 18 24-hour days to read aloud.

According to IRS data, it takes the average taxpayer 13 hours to gather and compile receipts and forms necessary to comply with the tax code. U.S. taxpayers and businesses spend more than six billion hours each year complying with the filing requirements of the Internal Revenue Code. As the Taxpayer Advocate’s 2012 annual report points out, if the hours Americans spent on tax compliance were instead spent on an industry, it would be one of the largest in the United States. Six billion hours is equal to the work of more than three million full-time employees.

In 2007 IRS researchers estimated it cost the median individual taxpayer $258 just to file their taxes. That’s because the code has become so complicated that average folks can no longer file their taxes without help from an expert.

And the burden hits small businesses especially hard. A 2011 Small Business Administration study noted that tax compliance costs for businesses with 20 employees or less cost $1,584 per employee, while compliance costs for large employers cost only one third as much.

Baucus’ Work to Make Tax Reform Transparent

· Over the past two years, Baucus and Camp together have held more than 50 public hearings on various aspect of the tax code, including the first joint hearing on taxes in 70 years.

· Baucus formed Montana working group made up of 15 Montanans from various industries across the state to advise him and provide feedback on legislative proposals that may be considered, and issued a call to action asking all Montanans to weigh in. (Read More) http://www.baucus.senate.gov/?p=press_release&id=1270

· Baucus, along with his republican partner on the Finance Committee, Orrin Hatch of Utah, are releasing a weekly series of "options papers" detailing the ideas Congress is discussing and giving the public a chance to weigh in. Individual options are not necessarily endorsed by Baucus, Hatch or the committee, but rather an effort to make every idea on the table public and transparent.

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