Gang of 12 agrees on reforming the antiquated tax code

Members of both parties of the Gang of 12 appears agree that reforming the tax code needs to be part of the deficit-reduction plan and open to the idea of lowering the corporate tax rate.

The corporate rates should be lowered “significantly,” said Senate Finance Committee Chairman Max Baucus (D-Mont.). But he added, “This is not an easy undertaking, corporate tax reform. It takes time.”

Panel members also disagreed over closing loopholes and tax breaks for corporate-jet owners, Thoroughbred horses and ethanol producers.

Mr. Tom Barthold noted that the individual income tax is the largest source of federal revenue, representing 47 percent of the pie. And he said between 1950 and 2010, corporate and excise taxes have declined as a percentage of overall revenue as employment taxes have increased.