	Introduction

Tax reform has been a subject of debate in the past several Congress and many policymakers agree that the U.S. tax system is in need of reform. To assist Congress as it continues to debate tax reform options, this report provides a review of recent legislative proposals introduced since the 113 th Congress. Although no comprehensive tax reforms have been introduced into legislation yet in the 115 th Congress, two 2016 reform proposals appear to be at the forefront of current congressional debates—the House GOP's "A Better Way" tax reform proposal, released in June, 2016, and President Trump's campaign reform proposal, released in September 2016. The House GOP's tax reform proposal is intended to be revenue neutral. Legislative Proposals

			Reform the Income Tax System

As of the date of this report, no legislation has been introduced that would provide a comprehensive reform of the individual and corporate income tax systems. The Fair Tax Act of 2017 ( H.R. 25 and S. 18 ) proposes to repeal the individual income tax, the corporate income tax, all payroll taxes, the self-employment tax, and the estate and gift taxes. These taxes would be effectively replaced with a 23% (tax-inclusive, meaning that the rate is a proportion of the after-tax rather than the pre-tax value) national retail sales tax. Other Tax Reform Proposals

The Tax Code Termination Act ( H.R. Please see " Tax Reform in the 115th Congress " for more details on these proposals. Replace the Income Tax System

Several proposals to replace the income tax system were introduced in the 114 th Congress: the Fair Tax Act of 2015 ( H.R. 29 , introduced in the 115 th Congress.) 1)

The Tax Reform Act of 2014 ( H.R. This formal legislative proposal was preceded by several tax reform discussion drafts, the first of which was introduced during the 112 th Congress. The Tax Reform Act of 2014 would have made substantial changes to the current federal tax system, modifying individual, corporate, and business income taxes, as well as the tax treatment of multinational corporations. The proposal also would have made a number of changes related to the treatment of tax-exempt entities, tax administration and compliance, and excise taxes.
Many agree that the U.S. tax system is in need of reform. Congress continues to explore ways to make the U.S. tax system simpler, fairer, and more efficient. In doing so, lawmakers confront challenges in identifying and enacting policies, including consideration of competing proposals and differing priorities. To assist Congress as it continues to debate the intricacies of tax reform, this report provides a review of legislative tax reform proposals introduced since the 113th Congress.
Although no comprehensive tax reforms have been introduced into legislation yet in the 115th Congress, two 2016 reform proposals appear to be at the forefront of current congressional debates—the House GOP's "A Better Way" tax reform proposal, released in June 2016, and President Trump's campaign reform proposal, released in September 2016. As with most recent tax reform proposals, both of these plans call for lower tax rates coupled with a broader tax base. In either case, numerous technical details would need to be addressed before either plan could be formulated into legislation.
Several proposals have already been introduced in the 115th Congress to replace the current income tax system. The Fair Tax Act of 2017 (H.R. 25/S. 18) would repeal the individual income tax, the corporate income tax, all payroll taxes, the self-employment tax, and the estate and gift taxes. These taxes would be effectively replaced with a 23% (tax-inclusive, meaning that the rate is a proportion of the after-tax rather than the pre-tax value) national retail sales tax. The Tax Code Termination Act (H.R. 29) would terminate the Internal Revenue Code (IRC) and declares that its replacement meet several criteria regarding simplicity, fairness, and efficiency. Both of these proposals have been introduced in previous Congresses.
In the 114th Congress, no comprehensive proposals to reform the individual and corporate income tax systems were introduced. There were, however, reform proposals to replace the income tax with an alternative system or abolish the current system altogether.
In the 113th Congress, then-chairman of the House Committee on Ways and Means Dave Camp introduced the Tax Reform Act of 2014 (H.R. 1). This legislative proposal was preceded by several tax reform discussion drafts, the first of which was introduced during the 112th Congress. The Tax Reform Act of 2014 would have made substantial changes to the current federal tax system, modifying individual, corporate, and business income taxes, as well as the tax treatment of multinational corporations. The proposal would also have made a number of changes related to the treatment of tax-exempt entities, tax administration and compliance, and excise taxes.
This report will be updated as warranted by legislative changes.