L40taxpanelAB.xml Tax Reform Panel–go page xx, with –x lines. Graphic: sorry. Run a photo of the White House?
The Bush administration’s secretive Tax Reform Panel says it probably will recommend a cap of either $11,500 or $8,400 per employee per year on employers’ tax exclusion for health benefits expenditures.
The panel recently held its final face-to-face meeting, and it is supposed to send U.S. Treasury Secretary John Snow a package of tax reform proposals Nov. 1.
The chairman of the panel, Connie Mack, a former Republican senator from Florida, said panel members had scheduled an Oct. 27 teleconference.
C-SPAN 2 carried a telecast of the last face-to-face meeting, but, at press time, the panel had not posted any summaries, let alone any detailed descriptions, of its reform proposals on its Web site, and the panel was not making written descriptions of its proposals available to reporters.
Panel officials said at the final face-to-face meeting that they would be presenting at least 2 proposals.
One proposal will call for the government to create a “simplified income tax” system that would eliminate many tax breaks, kill the much-loathed alternative minimum tax, and reduce the number of tax brackets to 3, from 6.
The other proposal, for a “progressive” consumption tax,” would make sweeping changes to the U.S. tax system.
For families, a progressive consumption tax would be like access to an “unlimited” Roth individual retirement account, which would give taxpayers the ability to avoid paying taxes on capital gains and investment income, according to Liz Ann Saunders, chief investment strategist at Charles Schwab Corp., San Francisco.
If the current version of the progressive consumption tax system proposal were adopted, individuals, families and sole proprietors would pay taxes only on wages and would not have to pay taxes on investment income or gains.