Millions of Americans agree that tax reform is necessary. A new proposal from Republican Rep. Dave Camp provides an interesting starting point for a debate on U.S. tax reform.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the Camp proposal, noting that the general idea is to mirror 1986 reforms by simplifying taxes, lowering rates but eliminating some deductions. Dan points out that under the proposal, there would just be three tax brackets, but some popular deductions would be limited or eliminated, and capital-gains income would be partially tax-exempt and partially taxable. Most surprisingly, changes to hedge-fund taxation and a bank tax that could hit Bank of America (NYSE:BAC), JPMorgan Chase (NYSE:JPM), and Wells Fargo (NYSE:WFC) shows that the proposal could gain bipartisan support under the right circumstances. Dan concludes that it'll be interesting to see how far Camp's proposal gets in Congress.

Dan Caplinger owns warrants on Bank of America, JPMorgan Chase, and Wells Fargo. The Motley Fool recommends Bank of America and Wells Fargo and owns shares of Bank of America, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.