Additions to Tax Reform Testimony
On Monday, February 12, 2007, I testified before the Joint Committee on Taxation on the issue of tax reform. See my prepared remarks here. I made two additional recommendations to the committee that were not included in my prepared remarks. First, the committee should undertake an extensive review of all taxes and fees currently on the books and determine whether or not they should continue to exist. In essence, a “BRAC Commission” for taxes. Secondly, the committee should order the creation of a tax compliance study for Maine. Just as Maine was a pioneer state in the creation of its tax incidence report, Maine would again be a pioneer state with the creation of a state level analysis of tax compliance costs. The federal government already undertakes such a study through the Internal Revenue Service. This report, for example, explores the federal tax compliance costs on small businesses.