USATODAY.com - Tax proposal for less paper, but fewer deductions

USATODAY.com - Tax proposal for less paper, but fewer deductions: "Tax proposal for less paper, but fewer deductions
By Richard Wolf, USA TODAY
WASHINGTON — Members of President Bush's tax commission planned to propose Tuesday to radically shrink and simplify federal tax forms, in part by doing away with popular deductions such as the one for state and local taxes.

The recommendation, which is subject to approval by the full nine-member panel, would replace the familiar 75-line Form 1040 with a 32-line '1040 SIMPLE Form.' It would also reduce the number of related schedules and worksheets from 52 to 10.

'I've been told that this is the simplest form that would be available to all taxpayers in more than 50 years,' said Jeffrey Kupfer, the panel's executive director.

The proposal is driven by Bush's demand for a simpler tax process and by a series of recommendations by the panel that would strip away scores of special tax breaks.

The latest is the deduction for state and local taxes. The proposal calls for the deduction, which will save taxpayers about $50 billion this year, to be eliminated. Last week, the panel agreed to limit popular deductions for mortgage interest and health insurance premiums."