National Commission On Economic Growth And Tax Reform

A Republican-appointed tax group--the one pushing a single-rate system with few deductions--wants the IRS to give it tax-exempt status so its contributors can write off their donations. The foundation set up to finance the National Commission on Economic Growth and Tax Reform has asked the Internal Revenue Service to classify it as a Section 501(c)(3) organization. That would allow contributors to deduct donations to it from their income the same way people who who donate to charities can.

A Republican-appointed tax group--the one pushing a single-rate system with few deductions--wants the IRS to give it tax-exempt status so its contributors can write off their donations. The foundation set up to finance the National Commission on Economic Growth and Tax Reform has asked the Internal Revenue Service to classify it as a Section 501(c)(3) organization. That would allow contributors to deduct donations to it from their income the same way people who who donate to charities can.

POLITICS: The Republican-dominated National Commission on Economic Growth and Tax Reform issued a report last month calling for a single tax rate and far fewer deductions. Now the commission is itself asking the Internal Revenue Service for tax-exempt status so taxpayers can deduct their donations to finance its operations. Republicans argue that the commission's purpose is educational, not political, and is thus worthy of the same tax exemption given to educational organizations.

House Republicans, sweeping aside a major barrier to the tax bill that is scheduled for a vote this week, agreed Monday to link their tax cuts to the goal of eliminating the federal deficit. Under the agreement, an array of proposed tax cuts aimed at businesses and families with children would not take effect unless Congress approves a spending plan this year that promises a balanced budget by the year 2002. "This will hold Congress' feet to the fire," declared Rep. Fred Upton (R-Mich.

Fueling a growing national debate over taxes, an influential Republican panel said Wednesday that the entire U.S. tax code should be thrown out and replaced with a drastically simplified version that features a single income-tax rate and few deductions.

How's this for an income tax system? Eliminate taxes on interest, dividends and capital gains. Throw out estate taxes. Get rid of all those complicated loopholes, credits and deductions. Impose a single low tax rate equating to maybe 17% of wages--no matter how much you earn. Have annual tax returns filed on a postcard. Nirvana? No. It's the flat tax.