President’s Economic Recovery Advisory Board (PERAB) Issues Draft Report On Options For Changes In The Current Tax System

The Board’s objective was to consider tax or policy changes that would achieve three broad goals: Simplify the tax system, improve taxpayer compliance with existing tax laws, and recommend strategies to reform the corporate tax system. It was to avoid any option that would raise taxes on families with incomes less than $250,000 per year and not to recommend any major reform of the Code nor adoption of a VAT in lieu of the current income tax system. In addition, it didn’t evaluate strategies for reducing the federal deficit. The report says information was gathered after months of input from business leaders, policy makers, academics, individual citizens, labor leaders, and others. Any recommendations of the Board do not represent Administration policy. The report can be viewed at http://www.whitehouse.gov/sites/default/files/microsites/PERAB_Tax_Reform_Report_for_final_vote.pdf.