After touting legislative victories achieved during the lame-duck session, particularly the massive tax cut package – the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) – President Obama is looking ahead to 2011. The president signaled that he expects Republicans and Democrats in the 112th Congress to debate reforming the U.S. Tax Code.

President Obama intends to start a “conversation” about tax reform in 2011 and said that he is hopeful there will be support from both parties to overhaul the tax system. Obama has outlined over the course of the past year how the current tax system could be simplified and revamped to eliminate unnecessary tax loopholes, particularly for U.S. corporations operating oversees. Obama has supported a simplified Tax Code with lower tax rates and a broader tax base.

At the same time, the president has acknowledged that any attempt to completely overhaul the current tax system, given its complexity, will not happen quickly. The last major overhaul of the Tax Code was in 1986. Looking ahead, Obama said the administration will focus on job creation and economic growth now that he believes the U.S. economy has stabilized.