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Tax Update: Next reform should build on sound policy and simplified code
- March 1, 2026: Vol. 13, Number 3

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Tax Update: Next reform should build on sound policy and simplified code

by Tyler Parks

The Republican Study Committee (RSC), a group of U.S. House Republicans, recently released two policy blueprints: the 2026 Budget and the Reconciliation 2.0 framework that prescribe tax and spending options to boost “affordability and prosperity” for Americans.  These blueprints offer some simple, pro-growth options, but include ideas that would add to tax complexity.

For the next round of tax reform, lawmakers should consider policies that simplify the tax code, encourage growth, and are fiscally responsible.

The federal government estimates that taxpayer compliance comprises 73 percent of Americans’ total out-of-pocket costs complying with federal regulations. Despite Internal Revenue Service (IRS) efforts to encourage electronic filing, increasing tax complexity swamps those efforts, contributing to a rising burden on taxpayers.

RSC’s budget highlights tax policy from the 2025 reconciliation bill that made strides to simplify the tax code, primarily

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