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TWO YEARS TO TAX REFORM?

June 21, 2005

Senator Jon Kyl, a member of the Senate Finance Committee, says that tax reform might be on the back burner for awhile. Tax Analysts reports:

An aide to Senate Finance Committee member Jon Kyl, R-Ariz., on June 20 confirmed comments the senator made in an interview with Bloomberg News in which Kyl said congressional action on fundamental tax reform is likely to be postponed until 2007.

According to Bloomberg, Kyl said that waiting to act on tax reform would give lawmakers enough time to discuss the findings of the President’s Advisory Panel on Federal Tax Reform and debate the issue during 2006, an election year. After debate, Congress could then move forward on changes to the tax system in 2007, Kyl said.

Last weekend the White House postponed the due date for the Tax Reform panel's report.

If tax reform waits two years, it might as well wait 20. Tax reform necessarily involves slaughtering a lot of sacred cows, and Congress is loath to do so in the runup to an election.

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