Political Tax News Roundup

• New York Times: Deficits and Tax System Changes in Bush's Second-Term Economy:

Empowered by his own victory and stronger Republican majorities in Congress, Mr. Bush has pledged to push an economic agenda that could be more ambitious than the $1.9 trillion worth of tax cuts over 10 years that he signed in his first term. The new economic agenda will focus on two big goals. One is expected to aim for a fundamental overhaul of the income tax, very likely in the direction of a system that lessens even further the taxation of investment income; the other to push for a partial privatization of Social Security that could eventually reduce costs but require borrowing more than $2 trillion over the next two decades

• Wall Street Journal: Bush, Buoyed by His Conservative Base, Sets More Ambitious Agenda for His Second Term:

George W. Bush, empowered by a convincing re-election victory, is laying out a second-term agenda that's in some ways more ambitious than the one he tackled in a momentous first four years in office. After a long night of vote counting and uncertainty, Mr. Bush emerged the clear winner yesterday and in a brief speech summarized his new vision. "We'll reform our outdated tax code," he said. "We'll strengthen the Social Security for the next generation. We'll make public schools all they can be. And we will uphold our deepest values of family and faith. We will help the emerging democracies of Iraq and Afghanistan."

• Wall Street Journal: Sen Grassley Wants To Extend 'Tax Relief Legacy' Next Year:

Senate Finance Committee Chairman Charles Grassley, R-Iowa, previewing the panel's agenda next year, said he hopes the committee "will look to extend our tax relief legacy in 2005." ... On tax relief, Sen. Grassley said, "We should look for as much permanence of previously enacted tax relief measures as possible. Taxpayers should see no lapse in tax relief. Economic growth depends on that. We likely will act to extend key tax breaks set to expire at the end of 2005, such as college tuition deductibility and the low-income savers' credit." He also said that "long term, the committee will work with the President as he seeks to simplify and restructure the tax code." He made his remarks in a statement released after President George W. Bush identified tax reform as one of the top priorities of his second term. "The president plans to appoint a bipartisan advisory committee on tax reform to consider changes," Sen. Grassley said. "I've said it'll take a national consensus on how to proceed on major tax reform. It might be that President Bush's re-election will produce that consensus."