Tax Reform Starts in Congress

Each year when it comes time for filing income taxes, hardworking Americans are forced to navigate what has become a needlessly complicated process. Because of the headaches associated with gathering or finding the necessary filing documents, navigating the tricky instructions and wondering still if you covered all your bases, it’s no wonder that many rely on paid professionals to comply or end up requesting an extension. Especially in the days leading up to April 15th, the cries for a simpler, more straightforward system have become more audible and serve as a reminder that tax reform is desperately needed in our country.

Just over a hundred years ago in 1913, the 16th Amendment to the United States Constitution established the modern income tax system. But time has made it unrecognizable; the tax code is longer and our yearly tax bill continues to get more expensive. Without question, the many changes to the tax code over the years, along with an increasing demand for higher taxes from Democrats, have caused much more frustration than improvement.

Republicans continue to discuss and propose solutions to help rather than confuse or penalize the people that the government is designed to serve. Most recently, this commitment to easing the burden on American taxpayers caused by the nation’s cumbersome code was present in the introduction and passage of budgets in both chambers of Congress. In the House proposal, lawmakers again recommended that the nation move toward a model that is easier to understand and navigate.

Unfortunately, President Obama continues to test the boundaries of his power by resorting to executive action on matters where Congress does not agree with him—either in part or at all. Instead of negotiating with lawmakers and abiding by the Constitution, the president has shown that he will bypass the legislative branch to get his way.

At the beginning of last month, White House Press Secretary Josh Earnest revealed that the president was considering unilateral action in all areas to further his agenda. When asked if that could include changes to the tax code, Earnest responded that “the president has asked his team to examine the array of executive authorities that are available to him to try to make progress on his goals. So I’m not in a position to talk about any of those in any detail at this point, but the president is very interested in this avenue generally.”

By even considering executive action with the tax code, the Administration is ignoring what the Constitution says. As written in Article 1, Section 8, “The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises.” Those words clearly explain where tax reform should begin, and it’s not with the executive branch. In a letter sent to Treasury Secretary Jack Lew following Earnest’s comments, Senate Finance Committee Chairman Orrin Hatch and House Ways and Means Chairman Paul Ryan both agreed that the Administration should respect the boundaries of its power and instead negotiate with Congress to find solutions. The chairmen called upon Lew to discourage unilateral action on tax reform by reminding him that it is not constitutional.

Certainly, Americans agree that something must be done to simplify the current tax system. But like other matters that cover so much ground, any overhaul should be the result of negotiation. Again, while lawmakers are open and ready to find common ground with the president on the matter, the negotiation constitutionally starts in Congress and cannot be legislated unilaterally by the executive branch.