Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

IS THE BIG MO' IS BEHIND A 'MORE CONSUMPTION-BASED' TAX?

March 22, 2005

An administration economic advisor, says that momentum is building towards a "more consumption based tax system." The speech by Kristin Forbes, reported in today's Tax Analysts, hints at a system based on the current system, but with more generous breaks for savings:

For several years in a row, the administration has proposed creating a short-term savings vehicle and consolidating and strengthening current retirement savings accounts. Forbes said the administration is hoping the tax reform panel breathes new life into those proposals.

Our guess still is that the commission will recommend something like the current alternative minimum tax, with the "Lifetime Savings Account" and "Retirement Savings Accounts" tacked on.

 • Tax Reform       Bookmark: del.icio.us • Digg • reddit