Tax Reform May Wait Until 2007 | AccountingWEB

Tax Reform May Wait Until 2007

A rewrite of the tax code, once targeted as a major theme for 2006, may be pushed back by one or two years.

A tax proposal is unlikely to draw Democratic support in a mid-term election year, according to Time magazine, quoting anonymous Republican sources. "No one wants to put something out there that's not going to go anywhere," a White House official told the magazine. Also, sources said there's too little time to create policy and to lay the groundwork for support from the American people.


Advertisement


Register Today for “10 Ways to Improve Your Closing Cycle Now!” Webcast to be held on Thursday January 5th, at 12:30 p.m. or 2:30 p.m. Eastern Time. Join Mike Willis, CPA and Partner, PricewaterhouseCoopers for a to-the-point, 30-minute Webcast on ways to complete this year’s close in less time and with less stress. Discover how making minor adjustments can accelerate your closing process and improve accuracy and quality. You’ll learn proven methods you can implement immediately so you can take on other new initiatives that add greater decision support and analytical value to your business. Register now!


FRx Software Home Product Information
Training & Consulting Product Demo
Webcast Customer Testimonial Video



President Bush appointed a high-powered panel to recommend changes to the tax code, which he has called “a complicated mess.” The panel made some controversial recommendations, including limiting the deduction on home mortgage interest, and the plan is now in the hands of Treasury Department. The original plan was to unveil a proposal by the end of this year that would be discussed during Bush's State of the Union address.

Sources now say Bush will speak in general terms about tax reform in the address without outlining specific proposals, Reuters reported. "I don't think there is enough time to churn out a policy," said one Republican.

Other proposals of the tax commission: limiting the tax-preferred status of employer-sponsored health insurance, reducing the number of tax brackets, and eliminating the alternative minimum tax.

Meanwhile, Bush continues to tout his first-term tax cuts as a good for economic growth, and he is pushing to extend those cuts.

"This economy of ours is on the move. People are being able to find work, and that's what's important to me. I want Americans working; I want anybody who wants a job to be able to find work - good-paying, steady work - and that's what's happening in America," Bush said in a Monday speech at the Deere-Hitachi Construction Machinery Corp. in Kernersville, N.C.

According to MarketWatch, Bush cited Labor Department figures that show 215,000 jobs were created in November, and he said the capital gains and dividend tax reductions helped create capital that sparked economic growth. Democrats, however, say the tax cuts have mostly benefited wealthy taxpayers and have little connection to the economic recovery.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.