Congress returned from summer recess earlier this month and while potential military action in Syria and the debate over the debt ceiling and other funding obligations have taken center state, the two tax-writing committees are pushing ahead on plans for comprehensive tax reform. The goal of both House Ways & Means Committee Chairman Dave Camp and Senate Finance Committee Chairman Max Baucus seems to remains the same: to formally consider tax reform legislation in their respective committees later this year.
In the House, Chairman Camp is currently h osting a series of meetings with his Republican colleagues on the Ways & Means pnael to discuss revising the tax code, and he has publicly stated he intends to hold a "mark-up" of legislation in October. While no draft text has yet been released, Chairman Camp has indicated his tax bill will address a wide array of issues, which is expected to include a lowering of both corporate and individual tax rates and a reduction of existing deductions and credits. It is unknown at this point how his bill will treat the charitable deduction. Over in the Senate, Chairman Baucus is also meeting with his colleagues over reform, but there appears to be widespread disagreement among Senators over whether tax reform should be revenue neutral and if reform should deal only with the corporate tax code or also include the individual tax code as well. Further complicating matters in both chambers, however, is the fact that the Republican leadership in the House and the Democratic leadership in the Senate have yet to sign-off on the aggressive timetable for reform laid out by Chairman Camp and Chairman Baucus.
Given these development and the very real possibility that the tax-writing committees will soon consider tax legislation in one form or another, PPP continues its advocacy efforts in support of the charitable deduction.