Issue Position: Tax Policy - Tax Reform

Issue Position

Among the President's announced goals upon taking office was reforming our current tax code. To that end, the President established a panel to analyze our current system. The panel was ordered to issue a revenue neutral report that simplifies the current code, reduces the cost of compliance, shares the tax burden in an appropriately progressive manner, promotes long-run economic growth and job creation, and better encourages work, saving, and investment.

In November of 2005, the Panel issued its report and two proposals for reform; the Simplified Income Tax Plan and the Growth and Income Tax Plan. Both plans share several common points (such as the elimination of the Alternative Minimum Tax); however, they differ in the taxation of businesses and personal income. More information on the panel, its report and subsequent proposals can be found at www.taxreformpanel.gov/index.shtml.

Rep. Eshoo remains very concerned about some of the Panel's recommendations, particularly limitations on mortgage deductions, however, these proposals are simply that: proposals. In order to change any aspect of our tax code, legislation would have to be introduced and passed into law. To date, no legislation has been introduced to act upon the Panel's recommendations.

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