In late June, Senate Finance Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT) proposed jump-starting tax reform by starting with a “blank slate” that eliminates all tax expenditures – both corporate and individual – in the code. They then asked their Senate colleagues to formally weigh in on which expenditures or credits should be added back into the code, based on which provisions would help grow the economy or make the tax code fairer.
Under this process, formal responses to Chairman Baucus and Ranking Member Hatch were to come from individual Senators, not outside organizations. But, because we believe getting the right tax structure for the entrepreneurial ecosystem is critical, the NVCA sent a letter to all Senate members outlining our views, and emphasizing the contribution of the venture-backed entrepreneurs to job creation and economic growth. You can view the letter here.
This exercise is just one component of what is expected to be a long, comprehensive debate over the next year – and quite possibly beyond. There will be other forums, hearings and opportunities for the venture industry to weigh in – and we intend to do so – as tax reform discussions continue.