• President’s Panel on Tax Reform Gives Preliminary Suggestions
• NASE Members Utilize Internet for Business Needs
• There is Still Time to Take the October Online Member Poll on Rising Gas Prices
• Senate Finance Committee Still Disagreeing on Health Care Cuts

President’s Panel on Tax Reform Gives Preliminary Suggestions

Connie Mack The President’s Advisory Panel on Federal Tax Reform gave preliminary suggestions on ways to change the federal tax system last week though full recommendations will not be presented until November 2005. The purpose of the panel is to recommend the best way to create a simpler and fairer tax system. The panel has come up with two things it agrees upon so far. It recommends limits on tax breaks for homeownership and employer-provided health insurance. The panel suggests that a reduction in deductibility mortgage debt would increase government revenue. For now, the interest on mortgages is deductible up to $1 million per couple. The panel recommends lowering this limit to something closer to $350,000. Panel members also suggested a cap on the amount of health insurance premiums that an employer can deduct. A preliminary figure is $11,000 per employee per year. John Breax The panel hopes that funds raised from these limits would make a reduction or elimination of the alternative minimum tax (AMT) feasible. The AMT was instituted to prevent high income tax filers from tax avoidance, but in recent years has begun affecting the upper-middle class. The president is in no way obligated to heed the advice of the panel and may accept some proposals but not others. The bipartisan panel is being led by former senators Connie Mack (R-FL) and John Breaux (D-LA). The NASE will continue to follow the progress of the panel. For more information about the advisory panel, visit http://www.taxreformpanel.gov/index.shtml. NASE Members Utilize Internet for Business Needs The NASE September voluntary online member poll tapped into members’ usage of the Internet for their micro-businesses. Most respondents stated that they were daily users of the internet (88.5 percent). The top answer given by nearly half of respondents for why they visit the NASE Web site (www.NASE.org) was to view information on member benefits (46.8%). Respondents also use the Internet for their businesses in a variety of ways. About one-quarter use it to email, conduct research, and purchase goods. To see the full results of the survey, visit http://advocacy.nase.org/membersurvey/default.asp. Methodology: Posted in the members-only portal on the NASE Web site, the survey was available for members to take through the month of August. Over 300 NASE Members opted-in to the non-scientific survey and members were prohibited from taking it more than once. There is Still Time to Take the October Online Member Poll on Rising Gas Prices Take the online member survey on your gas use and rising gas prices. Let the NASE know your opinions by visiting the MyNASE Web site at http://my.nase.org/. Log in to your free MyNASE Web Account. If you have not set up an account, you can do so at http://my.nase.org/ with your member number. Let your voice be heard in the association by taking this survey during the month of October. Senate Finance Committee Still Disagreeing on Health Care Cuts This week the Senate Finance Committee continues to struggle toward a happy medium of cutting Medicare and Medicaid benefits and expanding Medicaid coverage to the survivors of Hurricane Katrina. Chairman of the Senate Finance Committee Charles Grassley (R-IA) only needs to find consensus among Republicans, who outnumber Democrats 11 to 9. The bill was originally going to cut $10 billion from Medicaid but faced with criticism about such deep cuts to the federal health insurance program for the poor, Grassley tried to split cuts between Medicaid and Medicare, the health assistance program for those 65 years and older. Some senators think the bill has gotten too complicated, however, by trying to incorporate cuts with the Katrina relief. The NASE will continue to follow the status of this proposal. Let your legislators know what you think of this proposal by visiting the online NASE Legislative Action Center at http://advocacy.NASE.org.