|
| Bush's Tax Overhaul May Be Incremental WASHINGTON -- President Bush's campaign to make the tax code simpler, fairer and more pro-growth is likely to involve incremental changes to the current system rather than a sweeping effort to scrap the venerable income tax for a radically new approach, such as a national sales tax, The Associated Press reported Tuesday. But the changes Bush will propose are still expected to generate huge opposition, especially if he suggests scrapping favored tax breaks such as the deduction for state income tax payments. Tax experts in close contact with the administration say signs are pointing toward a plan that will seek to improve the income tax code, rather than replace it with a single-rate flat tax with no deductions, a national sales tax or Value Added Tax, all ideas that gained prominence among conservative Republicans in the 1990s. “Our members think the current tax code is way too complicated, but given the realities of the budget deficit and the embedded interests in the current tax code, it is very hard to make major changes,'' said Dan Danner, senior vice president for public policy at the 600,000-member National Federation of Independent Business. His group campaigned in the early 1990s to “Sunset the Code'' and replace it with a simpler tax system. Tax analysts noted the administration did not showcase any radical tax reforms at last week's two-day White House economic conference, preferring instead to review incremental changes, the AP reported. -- NYSSCPA.org News Staff Posted on 12/22/04 |
Print