Tax Reform Push May be Delayed

WASHINGTON -- The White House may delay unveiling a broad proposal to overhaul the tax code until 2007 or later, despite earlier discussions of making it a major theme for next year, people close to the White House said, Reuters reported Monday.

The White House had initially considered having the Treasury Department prepare a plan by the end of the year that could form the basis for a proposal in President Bush's State of the Union address. But several Republicans with close administration ties said it now seems likely Bush may only speak generally about tax reform in the address and not unveil specifics.

"I don't think there is enough time to churn out a policy," one Republican told Reuters on condition of anonymity.

Time Magazine, in its latest edition, quoted a White House official as expressing doubt that a major proposal to change the tax code could attract Democratic support in a mid-term election year. "No one wants to put something out there that's not going to go anywhere," the magazine cited a White House official as saying.

The Republican source who spoke to Reuters noted that several elements of the tax panel's recommendations, most notably the proposed cut in the home mortgage deduction, are controversial and making major revisions to the commission's report might take a great deal of time.

The position at Treasury that would normally serve as a clearinghouse for such efforts -- the assistant Treasury secretary for tax policy -- has been vacant for several months. "There is not the manpower to do it," the source told Time.

-- NYSSCPA.org News Staff

Posted on 12/5/05