Tax Reform Initiatives Appear Remote

IRS Commissioner Mark Everson told the National Press Club on March 14 that tax reform is not a high priority for the Administration or Congress, and that the Administration, in particular, shows no interest in moving on the proposals set forth in the President's Advisory Panel on Federal Tax Reform. That panel, among other things, had recommended completely overhauling retirement plans. The panel's recommendations were interpreted as meaning that ESOPs and other defined contribution plans would be replaced by a new version of 401(k) plans, but panel members have said that was not their intention. Whatever they meant, the proposals appear dead for now and, given the short shelf life of such commission proposals, almost certainly dead for the long term.