Take AMT and extending the tax cuts into account and instead of having a 2011 deficit of just over 100bn, we are looking at deficits close to 400bn again. Extending the Bush tax cuts costs about 400bn a year as far as the eye can see. This is unfair to the next generation that will ultimately have to pay the bill.
While tax authorities have increased surveillance and regulation in a bid to stem the flow of investment capital and profits to low-tax jurisdictions, it's easier to shift money around than it used to be thanks to technology. Both legal avoidance and illegal evasion techniques have become more accessible.
The Panel's income tax reform plan would make some positive changes such as eliminating the double-taxation of dividends and treating U.S. businesses on a territorial basis with regard to their foreign profits. Both of these changes would increase U.S. business competitiveness and spur investment. However, on both the individual and business parts of this simplified income tax, the proposed top tax rates were still too high. For example, the proposed 32 percent corporate rate would still be higher than the 28 percent average corporate tax rate in Europe.