US Legislation Would Prevent Patents On Tax Strategies

A bill was introduced into the United States Senate last week that would prevent any individual or company from being able to get a patent on a tax strategy. The bill also is included in the patent reform bill reintroduced into the Senate Judiciary Committee last week and expected to come up as soon as this week.

Senator Charles Grassley, an Iowa Republican, Senate Finance Committee Chairman Max Baucus (Democrat, Montana) and others introduced the bill, entitled the Equal Access to Tax Planning Act.

“Tax patents prevent taxpayers from being able to use certain tax strategies unless they’re willing to pay for them,” Grassley said in a release. “It’s unfair for taxpayers to have to pay for these methods. Also, tax patents undermine a tax system based on voluntary compliance. Our legislation reins in the cottage industry of those trying to own tax planning strategies that should be available to everyone or that would encourage inappropriate tax avoidance.”

Text of the tax patent legislation here.