Wednesday, September 28, 2005
The new report presents fiscally responsible recommendations for overhauling the federal tax system and raising the revenues needed to combat mounting federal budget deficits and the fiscal demands presented by an aging society. The CED proposal calls for a new hybrid federal tax system featuring a phased-in 10% VAT to supplement a reformed and streamlined federal income tax. The report also provides guidance for eliminating, reducing and consolidating special tax preferences. In addition, the report calls for the elimination of the AMT and reform of the Estate Tax.