Secretary of the Treasury, Paul O'Neill, has diagrammed his vision for major tax reform. Included among the items on his wish list are the abolition of the corporate income tax and the capital gains tax on businesses and some radical reforms to the Social Security system.
In an interview with the Financial Times, Secretary O'Neill espoused his reform theories, mentioning that his ideas are not necessarily completely in sync with those of the Bush administration.
Secretary O'Neill favors complete abolition of the corporate income tax, which has a top rate of 35 percent. He understands that such a move would necessitate an increase in personal income tax, but recognizes that abolition of the corporate income tax would reduce the overall tax burden and promote economic growth.
In a discussion about his dissatisfaction with the income guarantees for retirees provided by the Social Security system, Secretary O'Neill commented, "Able-bodied adults who have the ability to earn income have an obligation not to pass part of their own responsibility on to a broader population."
Secretary O'Neill anticipates that the $1.35 billion tax reform package currently being considered by Congress will pass by the end of this week.