Posted on 01/07/2005 3:15:56 PM PST by BigSkyFreeper
WASHINGTON -- President Bush on Friday called streamlining and reforming the U.S. tax code an "essential task for our country," but offered few hints of how he intends to get it done.
Treasury Secretary John Snow said "everything's on the table," including possibly the popular home mortgage and charitable deductions and a former senator leading a tax-reform panel for Bush said that a national sales tax or flat tax also could be in the cards.
"I am firm in my desire to get something done," Bush said at the end of a White House meeting with former Sens. Connie Mack, R-Fla., and John Breaux, D-La., the leaders of a nine-member panel the president appointed Friday to recommend reforms to the tax code.
"A simple code will make it easier on the taxpayers," Bush said. "But it's an important task in order to make sure the economic growth we are seeing in the United States continues forward. ... It seems like to me the tax code today discourages economic vitality and growth when you spend billions of hours filling out the forms."
Snow, talking to reporters later outside the White House, said the panel has been ordered "to take a hard look at everything."
Asked if that includes the home-mortgage and charitable deductions that millions of Americans use to reduce their federal tax liabilities, Snow gave no solid assurance that either would be kept. He merely noted that the panel has been told to "give due consideration to the importance of charitable deduction and the home mortgage deduction."
"And we will," Mack said.
Another key question facing the panel is whether to accomplish reforms through changes to the existing tax code, or by scrapping it and moving to either a flat-tax or national sales tax system.
"I think it could be addressed in any of those," Mack said.
"Everything's on the table," he added, echoing Snow.
Mack and Breaux insisted that Bush had not given them any specific marching orders or tried to send them in any particular direction.
"The president was pretty clear in his comments with us -- that we have great latitude, there is no end result that he was trying to lead us to, other than the fact that he said, you know, this is got to be simpler. ... The other objective they asked us to keep in mind is that it should be pro-growth, it should create greater opportunities for job creation," Mack said.
"I frankly begin the process without conclusions in my mind about what should take place," he added.
But though both former senators emphasized an open process that will draw in citizens and experts from around the country as they craft recommendations for a tax code overhaul, Snow made clear that the White House will have its hands in the effort the whole way.
"I don't think what they give us will be a total surprise to us," he said. "I look forward to having regular consultations."
The panel is to deliver its report to the Treasury Department by July 31.
I would get some businessmen on the committee. Steve Forbes would be one of my choices; along with financial analysts, actuaries, and economists for the modeling.
Large successful corporations have marshalled these kinds of resources, and been doing this for decades.
Once a plan has been agreed upon; then there is the "sales" side to the business and private sector.
The process steps are relatively simple on a high level, the devil is in the details.
I've run over a hundred business projects over the last 35 years; and I can say that there needs to be a clear focus on achieving an objective, then identify the stes towards achieving the objectives.
Let's hope they enact a national sales tax and do away with this ridiculous system. It's insane and detrimental to our econmy globally. do you remember when Clinton claimed $10 for his underwear shorts that he donated?!! He should have saved them for his library.
The simplified tax code would be 3 times longer than the present complex version, and even less easily understandable. Some things (like tax code) tend to acquire life of their own, and then they are no longer things, properly speaking. Purposeful manipulation of them becomes impossible, for no matter what one tries to accomplish with them, the cursed meta-life ignores the external intent and accomplishes (or tends to) its own.
Especially with such a limp-wrist like Bush in charge. He'll put forth a reform plan and then instantly cave and compromise as soon as the liberals complain. Then he'll sign it no matter how bad congress butchers it. My predicition from any Bush tax reform bill: higher taxes thinly disguised as reform.
And of course you have nothing with which you can back up your claims except for your obvious dislike of President Bush.
You do that, and the Socialist bastards in NY and CA will be screamin for tax hikes. The push will come from the Socialist bastions of this country.
We can't kill the beast even if we try? You may be right but we'll never get to the point where we even get a chance to try. Congress doesn't want to make any fundamental change that would reduce their power to sell tax legislation. It's stock in trade for them and they will never do anything that infringes that power. Never.
Line 1. "How much money did you make?"
Line 2. "Send it to us."
True: the congress (with corresponding staffers), since it has tax writing powers, is an important part of the entrenched tax bureaucracy. You just gave me one more confirming example of my more general statement.
Well, the news is promising....they are going to look at everything, including a NRST.
However, we need to get our voices heard. How will this be done? Town meetings it sounds like....but there seems to be no way to contact the panel as yet.
I have been listening to the discussions on tax reform for many months now and doing away with the income tax...So far I don't see much wrong with the sales tax. Some of the complaints, such as the poor would be regressively taxed, have been addressed.
I understand clearly that there are various interest groups, not the least of which is the IRS and those that want to hold their constituents hostage to political benevalence, who don't want ANY tax reform and changing this would be monumental.
On the other hand I have been in business for myself for some time and my two major gripes about the system now are
1) there is not much incentive to create more business , as the tax on any increase I make is so brutal and I don't have the large deductions of big business. I also have the record keeping nitemare ( though that may still be there).
2) Our taxation on corporations do not make us very attractive to business outside our shores.
You are right, the devil is in the details...but if conservative business leaders get in on this, we may be able to make some changes.
Ping
For a thumbnail explanation of the national retail sales tax, AKA the Fair Tax, see http://www.fairtaxvolunteer.org/smart/sketch.html
Thanks. I have been meaning to check this out. You just gave me the incentive.
I don't mind paying taxes. This is a great country, the very best in the whole world. I just want my taxes to go to where they should: our fine military, protection of its citizens, infrastructure and caring for those truly in need.
Bump and Ping
It's very exciting and well worth reading everything on the site.
If you would like to be added to this ping list let me know.
John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information: http://www.fairtax.org, http://www.salestax.org & http://www.geocities.com/cmcofer/ftax.html
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.