The "Blank Slate" Tax Reform- How Can It Affect You?
Figuring out how to file your tax returns can seem way too complicated. The good news is there’s a plan underway in Washington right now to reform the U.S. Tax Code. It’s called the Blank Slate. But it may not be what we hoped for. Here with everything you need to know is Fox 29 lawyer Shari O.
The Senate Finance Committee is moving forward with plans to revise the U.S. Tax Code but the way it is going about that is different from anything we’ve ever seen. In a nutshell they’ve said they are considering all tax deductions, credits and exemptions gone – leaving the Tax Code a “Blank Slate.” And they’re giving other Senators until July 26th to chime in on any deductions, credits or exemptions they believe should be put back into the newly re-written Tax Code. Those items will be included in what’s being called a Pardon List. Normally they’ll draft a Bill and circulate it for comment but critics say the blanks slate is a strategy that allows Senators to not be responsible for killing special tax breaks.
This could be a very big deal because virtually every tax break we count on is on the table. Real estate is the most widely held asset among average Americans. Many people rely on tax benefits that come from owning real estate. The Blank Slate reform could impact this area of income as well as deduction and exemptions for charitable contributions, even retirement savings.
The Committee has said it will use a three prong test to evaluate credits, exemptions and deductions that wind up on the Pardon List. To survive, those items will have to help grow the economy, make the tax code fairer and promote an important policy objective. Anyone who wants to learn more can go to www.taxreform.gov.