by Curtis S. Dubay, David R. Burton
The Heritage Foundation
March 14, 2014
House Ways and Means Committee Chairman Dave Camp’s long-awaited tax reform plan includes such positive reforms as lowering rates for families and eliminating many deductions and credits that are unnecessary for neutrality. It also modernizes the tax code’s treatment of international businesses. However, along with these positive reforms, it includes policies that increase the cost of investing. Chairman Camp was forced to make these trade-offs because he chose to work within the confines of the current system and adhere to a static estimate of revenue neutrality. The plan is slightly pro-growth in the first 10 years but would likely decrease growth thereafter. Despite its flaws, the Camp plan keeps the discussion about tax reform alive and serves as a guide for authors of future plans.