An Experiment in Reforming the Tax System
New York State Society of Certified Public Accountants
The CPA Journal
In Jan 2005, Pres Bush appointed a nine-member advisory Panel to make recommendations for reforming federal tax laws. The Report of the President's Advisory Panel on Federal Tax Reform, titled "Simple, Fair, and Pro-Growth," was issued Nov 1, 2005. The report's recommendations are described as follows: 1. Taxation of Households, 2. Savings and Retirement Plans, Capital Income (Dividends, Interest, Capital Gains), 3. Taxation of Business, 4. Taxation of International Transactions, and 5. Epilogue. The Panel's recommendations have received a mostly lukewarm reaction from the public and the media because, for many taxpayers, the recommendations are controversial. For some, the recommendations do not go far enough, because they would not tear out the old tax system by its roots and replace it with something new. The Panel's recommendations will likely shape the debate over tax reform in the years ahead, but its specific provisions are not likely to become law soon.