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Tax reform is the process of changing the way taxes are collected or managed by the government.
Tax reformers have different goals. Some seek to reduce the level of taxation of all people by the government. Some seek to make the tax system more/less progressive in its effect. Some may be trying to make the tax system more understandable, or more accountable. Many organizations have been set up to reform tax systems worldwide, often with the intent to reform Income taxes or Value Added Taxes into something considered more economically liberal. Other propose tax systems that attempt to deal with externalities. Georgism claims that various forms of land tax can both deal with externalities and improve productivity.
There have been many movements in the United States to reform the collection and management of taxes.
As the United States was still being formed, the Whiskey Rebellion of 1794 may be considered to be the first effort for tax reform in the United States. President George Washington led 12,950 troops to western Pennsylvania to put down the rebellion.
The President's Advisory Panel for Federal Tax Reform's major push was for the removal of the Alternative Minimum Tax. Several organizations are working for tax reform in the United States including Americans for Tax Reform and Americans For Fair Taxation. Various proposals have been put forth for tax simplification in the United States including the FairTax and various Flat tax plans.
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