The report presents options for changes in the current tax system aimed to achieve the broad goals of simplifying the tax system, improving taxpayer compliance with existing tax laws and reforming the corporate tax system.

For corporates, the report presents options for reducing marginal corporate tax rates and broadening the tax base through a level treatment of debt and equity financing or by elimination of deductions or reductions in tax expenditures.

The report also presents options addressing international corporate tax issues considering that US has one of the highest statutory corporate tax rates among developed economies. The report discusses changes to foreign tax credit rules as well as the challenges in applying national tax systems to cross border transactions.

US is also the only major developed country economy that uses a worldwide approach to taxation of corporate income as against other developed countries that use a territorial approach that taxes only the domestic income of their corporations and exempts all or a significant portion of their overseas income from domestic taxes.

Considering the costs of administering and complying with the current US system, the report discusses the pros and cons of a move to a territorial system or the option of retaining the worldwide system with a lower corporate tax rate.

For individuals and families, the report explores an array of options involving merging of tax credits for children, childcare, education and other family expenses.

This is not the first time tax reforms have been proposed. Earlier, in 2005, President Bush had initiated tax reform by appointing a panel of advisors to simplify the American tax system. The final reports were archived but never implemented.

Therefore political willpower is the need of the hour, if any further movement is to be expected.