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WSJ: Support for Reagan-Era Tax Bill Grows in Washington

Wednesday, 23 Mar 2011 01:11 PM

Support in Washington for a Reagan-era tax bill is growing, The Wall Street Journal reports. The Tax Reform Act of 1986, which wiped out tax breaks and then used that money to lower overall tax rates, is gaining favor among both Democrats and Republicans.

"The Senate Finance Committee has been holding hearings on whether the glory of '86 can be re-created. Former New Jersey Sen. Bill Bradley, an early hero of the tax-reform effort, has been consulting with Treasury Secretary Timothy Geithner on the factors that led to the '86 success," the Journal reports.

"And House Ways and Means Chairman Dave Camp said last week he wanted to eliminate tax breaks and cut the top rate to 25 percent."

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Ronald Reagan
Advocates for tax overhaul say changes are needed to boost both jobs and exports, pointing out that corporate and payroll taxes place burdens on companies who would otherwise hire.

Some say cuts should go hand in hand with implementing new taxes elsewhere in the economy, such as an energy tax to spur conservation or a value-added tax to encourage companies to export more.

"You need a president to be for it," Bradley says, according to the Journal. "People with equal incomes should pay equal taxes," while "the market is a more efficient allocator of resources than the Finance or Ways and Means Committee."

Both sides of the political aisle recently agreed on tax cuts, which are reportedly fueling economic recovery.

Cuts to the Social Security taxes helped lift retail sales for the eighth straight month in February, according to the Commerce Department, the Associated Press reports.

Higher oil prices, however, could crimp the return to consumer spending.

"Consumers are back, but whether they will stay is the big question," says David Wyss, chief economist at Standard & Poor's in New York.

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Support in Washington for a Reagan-era tax bill is growing, The Wall Street Journal reports. The Tax Reform Act of 1986, which wiped out tax breaks and then used that money to lower overall tax rates, is gaining favor among both Democrats and Republicans. The Senate...
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2011-11-23
 

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