Business groups push for business-friendly tax reform

The Obama administration and lawmakers from both parties have expressed an interest in revamping the tax code, and the deficit-reducing supercommittee also has discussed the issue.

But policymakers still have to overcome differences to successfully reform the tax code, including whether an overhaul should be revenue-neutral or, as President Obama has called for, includes revenues directly earmarked for deficit reduction.

The Obama administration also has, so far at least, spent more time pushing for corporate tax reform, while Republicans like Rep. Dave Camp (R-Mich.), the chairman of the House Ways and Means Committee, want a more comprehensive approach.

Camp has taken that stance in large part because many small businesses, called pass-through entities, pay their taxes through the individual code and would be left behind in any corporate-only reform.

In their letter, the 44 business groups make the same sort of argument and also ask that corporations and individuals be taxed at similar low rates.

The groups also want policymakers to take a look at the so-called double taxation for corporate income – essentially, the idea that corporate profits are first hit with the corporate income tax and then taxed again when businesses issue dividend payments.