As lawmakers work to reduce the federal budget deficit, many seek to overhaul the tax code as a way to boost economic growth and ultimately increase federal revenues. Comprehensive reform of the Internal Revenue Code has not occurred since 1986, and lawmakers have endeavored to address tax reform during the past decade without success. In policy circles in Washington, D.C., tax reform perpetually seems to be just over the horizon yet always out of reach.
However, the current budget environment has breathed new life into previously inconceivable policy initiatives, including tax re-form. Although a task as massive as rewriting the tax code is unlikely to occur as part of the immediate budget discussions, the groundwork could be set for a tax overhaul that likely will have significant implications for businesses in the roofing industry.
Tax reform consensus
There is bipartisan agreement on the need for tax reform for several reasons. There is broad agreement that the tax code is far too complex, increasingly burdensome and costly, which causes compliance problems for individuals and small businesses. Also, the temporary nature of much of the tax code renders many tax incentives ineffective. It is difficult, for example, for a business to plan capital investments when the maximum Section 179 small-business expensing amount changes almost every year.