Hurricane Katrina May Derail Tax Reform

September 8, 2005

Bloomberg reports that huricane Katrina business is pushing tax reform onto the back burner on Capitol Hill:

Republicans are delaying action on central elements of their tax-cut agenda as Hurricane Katrina recovery costs mount and Democrats criticize measures they say would mostly benefit the wealthy.

Congressional Republican leaders postponed a Senate vote to repeal the estate tax and put off until at least next month a $70 billion package of tax cuts. President George W. Bush’s tax- reform panel yesterday postponed its two remaining meetings and may delay its final report, scheduled for Sept. 30.

“There will be a good time for tax reform but right now would not be it,” White House spokesman Trent Duffy said of the tax panel.

The President’s Advisory Panel on Federal Tax Reform also issued a press release annoucing it is postponing its last two meetings and possibly the release of its final recomendations due out September 30.

To say the least, the news doesn’t bode well for efforts to fundamentally reform the U.S. tax code.

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