Alan Greenspan, et al, Advisory Panel on Federal Tax Reform

Remarks by Chairman Alan Greenspan Chairman Board of Governors of the Federal Reserve System before the President.s Advisory Panel on Federal Tax Reform Washington, D.C. March 3, 2005

"Simplification of an overly complex structure was another important accomplishment of the 1986 reform. Unfortunately, tax code drift since 1986 has evolved to a point where taxpayers are again confronted with great complexity. Indeed, an individual taxpayer may have difficulty even knowing his or her marginal tax rate because of the overlapping web of deductions and exemptions and the provisions that attempt to limit those deductions and exemptions. And many taxpayers are now required to compute their liability under two systems--the regular income tax and the alternative minimum tax. Such challenges also affect lower-income households, who face the complexities of the Earned Income Tax Credit. A simpler tax code would reduce the considerable resources devoted to complying with current tax laws, and the freed-up resources could be used for more productive purposes. Thus, greater simplicity would, in and of itself, engender a better use of resources."

• Directions


• Agenda
  • Written Statement of Senator Connie Mack
  • Written Statement of Chairman Alan Greenspan
  • Written Statement of Secretary James A. Baker, III
  • Written Statement of Commissioner Mark W. Everson
  • Testimony of Nina E. Olson
  • Testimony of Joel B. Slemrod
  • Testimony of Leonard Burman
  • Testimony of Claudia Hill
  • Written Statement of Thomas Rinaldi
• Transcripts (to be posted when available