Tax reform

Tax reform occurs when a federal law is passed that alters some aspect of the manner in which taxable income is calculated or tax rates are imposed on taxpayers. Tax reforms may be passed in order to improve the administration of tax collection, increase tax revenues, or adjust the existing level of economic or social benefits derived from the existing tax system. Tax reform may include any of the following:

  • Changes in tax rates
  • Changes in filing requirements
  • Changes in allowable deductions
  • Changes in allowable tax credits