Panel Sees Too Many Tax Breaks at the Federal Level

WASHINGTON -- The presidential commission studying the tax laws has reached the conclusion that there are just too many deductions and credits, the Associated Press reported Monday.

"We have lost sight of the fact that the fundamental purpose of our tax system is to raise revenues to fund government," according to President Bush's Advisory Panel on Federal Tax Reform.

The commission's chairman, former Florida Sen. Connie Mack, said its nine members have been surprised at the number of tax deductions and credits.

"It wasn't until we really had the opportunity to listen to so many different people talk about so many different aspects of the code that it really sunk in about how much and how often the code is being used these days to either create incentives or disincentives for either investment or behavior," Mack said in an interview with The Associated Press.

The White House budget office ranks the cost of a deduction for businesses that provide health insurance to employees as the top tax break, worth $126 billion next year. Also high on the list are the popular mortgage interest deduction, a capital gains break for home sales, a deduction for charitable contributions and the child tax credit.

This summer, the panel plans to recommend ways to make the tax laws simpler and fairer.

-- NYSSCPA.org News Staff

Posted on 4/25/05