G.O.P. Constituencies Split on Tax Change(4 easy partial bills to protect

[papau]

investment class might be approach Bush uses)

http://www.nytimes.com/2004/11/22/business/22tax.html

G.O.P. Constituencies Split on Tax Change
By EDMUND L. ANDREWS and DAVID D. KIRKPATRICK


"You can accomplish the same thing in different ways," said Mr. Moore, the president of the conservative fund-raising group, called Club for Growth. "What we would settle for is tax reform in three or four or five easy pieces, and I think that is where Bush is headed."<snip>

The measures include an elimination of taxes on stock dividends, expanded tax-free health savings accounts and big new "lifetime savings accounts" to shield almost all savings from taxes.

Another idea in circulation, which has been promoted for years by advocates of a consumption tax, is to let companies immediately write off the cost of new buildings and equipment - another way of eliminating taxes on investment.

To offset those tax cuts, many proponents of tax overhaul outside the administration have suggested eliminating major deductions, like those for state and local taxes and corporate interest payments.

But the political hazards are enormous. Eliminating the deductibility of state and local income taxes would infuriate people in high-tax states along the East and West Coasts. And while many of those states voted Democratic in elections three weeks ago, Mr. Bush would find himself in bruising battles with Republican governors like George E. Pataki of New York and Arnold Schwarzenegger of California.<snip>

[Inland]

1. Lower taxes on businesses and rich, raise on blue state middle class

This adminstration's policies are entirely predictable.