Presidental Panel Proposes Tax Simplification - Not Reduction
The proposal would abolish the Alternative Minimum Tax, a levy originally drafted to prevent wealthy individuals from escaping taxation but increasingly reaching into the middle class forcing them to pay at least 28% tax on their income. They also would eliminate federal deductions and credits for mortgage interest, state and local taxes and education, among others.
There is little chance this reform will be enacted in 2006 because it is an election year for Congress.
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