Wyden and Gregg Introduce Tax Reform Bill

On February 23, Senate Finance Committee members Ron Wyden (D-OR) and Judd Gregg (R-NH) introduced the Bipartisan Tax Fairness and Simplification Act of 2010, S. 3018.  The Wyden-Gregg bill would eliminate or reduce several tax expenditures and establish fewer tax rates for individuals and corporations.  The bill would eliminate the federal income tax exemption for state and local bonds and establish a tax credit for state and local bond holders equal to 25 percent of the bonds’ interest cost. 

Senate Finance and House Ways and Means Committee staff say Congress is unlikely to pass tax reform legislation this year.  The Committees plan to continue to look into this issue, however, and may hold hearings later this year.