New Tax Overhaul?
Today's Washington Post:
The Bush administration is eyeing an overhaul of the tax code that would drastically cut, if not eliminate, taxes on savings and investment, but it is unlikely to try to replace the existing tax code with a single flat income tax rate or a national sales tax, according to several sources familiar with ongoing tax deliberations.
...The administration plans to push major amendments that would shield interest, dividends and capitals gains from taxation, expand tax breaks for business investment..
The changes are meant to be revenue-neutral. To pay for them, the administration is considering eliminating the deduction of state and local taxes on federal income tax returns and scrapping the business tax deduction for employer-provided health insurance, the advisers said.
That's great. I mean, why should business get tax breaks for directly providing their employees with health insurance? Much better that they get tax breaks for laying the workers off in the first place.