Posted on 11/17/2004 6:51:52 AM PST by Mike Fieschko
The Senate's top tax-writer expressed doubts Tuesday about prospects for a major overhaul of the tax code, dealing a blow to one of President Bush (news - web sites)'s top priorities two weeks after his re-election.Sen. Chuck Grassley, R-Iowa, chairman of the Senate Finance Committee, said comprehensive tax reform would be "difficult" to do. "I'm not one to spend a lot of time tilting at windmills," he said.
Grassley said Bush would have to aggressively use his "bully pulpit" to win wider popular support. After the election, Bush said he had earned "political capital, and now I intend to spend it" by pushing for changes in the tax code and Social Security (news - web sites), among other things. But Grassley said, "I'm not sure how much political capital (the president) is prepared to spend on it."
Grassley's view is important because all tax bills go through his committee. In an interview with USA TODAY, he said Bush made a mistake by not talking about tax reform more often and more explicitly in the campaign. "I think there was a missed opportunity," he said.
White House spokeswoman Claire Buchan said Bush "talked daily during the campaign about the importance of making the tax code simpler, fairer and more conducive to economic growth, and he looks forward to working with Congress on this priority."
Bush has called for simplifying the tax code in a "neutral" way that would not significantly raise or reduce tax revenue. That could make changes tougher, because any big tax cuts for some would have to be paid for with increases for others, creating winners and losers.
The White House is assembling a bipartisan panel that's expected to make recommendations before Bush settles on a specific proposal next year. Among his options is the replacement of the progressive income tax with a single, "flat" income tax rate or retail sales tax.
Grassley suggested that he favors more incremental changes: making the 2001 and 2003 tax cuts permanent, closing loopholes, shielding middle-income Americans from tax increases, and reducing the tax burden on savings and investment.
The last time Congress overhauled the tax code was in 1986 under President Reagan. That law broadened the tax base by slashing loopholes. It collapsed 15 income tax brackets, topped by a 50% rate, into two rates of 15% and 28%. Since then, new tax breaks have been added and the number of brackets raised to six, topped by a 35% rate.
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Well, we can't attempt to do anything Difficult, can we? Might damage our self-esteem. Incremental changes are definitely better. (/sarcasm)
I've decided I really dislike this man!
Misleading headline. Not unusual for Yahoo.
He is saying it will be hard, but can be done. So what is new in DC?
Politics is the art of the possible, unless you are Ronald Reagan. Then anything is possible.
Grassley is a very fair and smart guy. Sounds like his interview was excerpted by this MSM rat.
I can see where Grassley is coming from. I'd like a simpler tax code but I also like deducting mortgage interest, 401k, state/local income tax, my employer health plan premiums, public transit fare, and child tax credits.
Difficult to appease the trial and tax lawyers, put them all out of work, they don't want to touch this bureaucrat's tax code, too many fat cat jobs at risk.
Then resign your post 'Sancho Panza'.
Lead, follow, or get the hell out of the way!
Thanks for the reminder ... sometimes I forget about that stuff!
What is so difficult??? Shut down the IRS, stop collecting income/payroll tax and replace it with either a flat tax or federal sales tax. Sounds simple to me.
The losers would scream bloody murder. The only way to do it is to ram it through with bipartisan support, much like Reagan did with Rostenkowski in his second term. The actual tax plan that became law then was very close to Bradley-Gephardt, and Bill Bradley was the biggest booster of the plan in the Senate.
If people want radical reform, like a flat tax, there would be hugh and series winners and losers! The way to get radical reform through is a gradual phase-in, maybe five or even ten years.
The biggest problem is corporate taxes. We have higher corporate taxes than almost every other country in the world. That's just plain foolish, and it hurts our economy. Unfortunately, hating Big Business is not just a touchstone for the Left; there are some on the Right who also feel that way.
Oh well, we may as well give up now. Its over, scrap the plan, Yahoo! says so. Without Sen. Chuck Grassley, R-Iowa were doomed. I mean, there are only going to be 53 other Republicans and a couple of conservative DIMs to deal with and forget it. It wont be a fair fight with us possibly losing 1 Senator. Help, were drowning.
In other news: Man will not go to the moon, Man will not fly, Man will not cure Polio, and Man will not break the 4 minute mile because it is too hard and Sen. Chuck Grassley, R-Iowa says it is impossible.
What would the level of the flat tax or sales tax need to be to offset the loss of all income and payroll taxes? Who would be the winners and losers under your plan?
We need fewer "visionaries" like Grassley.
The reason it is "difficult" is because of all the interests whose oxen will be gored, not the least of which are the legislators themselves. It's a big bag of candy that they get to dole out in return for payoffs that they call campaign contributions. Please also keep in mind the "tax simplification" scheme in which they took away deductions helpful to the middle class (credit card debt, medical expenses, etc.) in return for lower rates and then, just as quickly as possible, raised the rates but did not reinstitute the deductions.
Then Grassley needs to be out there RIGHT NOW screaming to the MSM lowlife about mischaracterizing what he said.
Color me unsurprised.
Is this guy a "lawyer" perchance? I bet he is!
Lawyers have all but destroyed this country - we must return the favor.
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