Tax Reform Proving to Be Difficult Issue

Many congressmen support the idea of tax reform. But it will be difficult to get anything done on that score soon, because some reform plans would include tax increases, which are unacceptable to many conservatives, The Hill reports.

Sen. Orrin Hatch

A bipartisan group of six senators is working on a broad deficit reduction plan, and some top Republican senators say it will be very difficult for them to support a proposal that calls for increased tax revenue.

Sen. Orrin Hatch, R-Utah, is a case in point. He said late last month that he supports redoing the tax code, but he added that only spending cuts should used for deficit reduction. “Separately, we must promote tax reform,” said Hatch, the ranking member of the Senate Finance Committee. “If we try to mix the two, we risk walking down the road to a back-door tax increase.”