Capital Investment Taxes To Be A High Priority Under Tax Code Review, Says Snow

by Mike Godfrey, Tax-News.com, Washington

11 October 2004

A more benign tax regime surrounding the writing-off of capital expenses will be a likely result of the review of the US tax code proposed for a second Bush presidential term, Treasury Secretary John Snow indicated last week.

Speaking to business leaders in Independence, Missouri, Mr Snow revealed that a change in the tax code to encourage more investment and saving in the US would be a high priority under future reforms.

"Supporting capital investment is something that we are certainly going to have to pay attention to as we rethink the code,” he noted.

Snow was referring to a proposal sketched out by Bush in a speech to Republican supporters last month calling for a comprehensive rethink of the US tax code by a yet-to-be-determined bipartisan panel. Bush described the present body of tax law as “a complicated mess” full of “special interest loopholes.”

Putting the case for reform, Snow told the round table discussion that the review “gives us a chance to step back from the crazy quilt pattern of the code and all the internal machinations of it."

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