The final package will annoy everyone equally and privilege unearned income even more than now
G.O.P. Constituencies Split on Tax Change
By EDMUND L. ANDREWS and DAVID D. KIRKPATRICK
WASHINGTON, Nov. 21 - Stephen Moore, the president of a conservative fund-raising group, wants to overhaul the tax code. So do Dr. Richard Land of the Southern Baptist Convention and Grover Norquist, president of Americans for Tax Reform, a conservative group.
They just don't agree on how to do it.
Even though it will be months before President Bush proposes an overhaul of the income tax, key Republican groups are already divided about how or even whether to proceed. Regardless of which path Mr. Bush pursues, he is likely to be pulled by conflicts between parts of his political base.
Economic conservatives share an ideological belief in flattening income tax rates and eliminating as many tax preferences as possible. And business groups want to preserve breaks for research, oil drilling, health insurance, equipment leasing and scores of other purposes.
Christian conservatives want to promote charitable deductions and "family values," and may want to defend tax breaks for married couples with children.
"People are not going to give the kind of support necessary for tax reform that leaves the investor class untaxed," said Dr. Land, who is president of the Southern Baptist Convention's Ethics and Religious Commission. "That is not going to be politically viable."
These differing constituencies pose a significant challenge for Mr. Bush, so much so that many Republican lawmakers are openly doubtful about whether to attempt a tax overhaul. Some Senate Republicans wonder about public enthusiasm for tax reform, despite widespread discontent with the complexity and apparent unfairness of the current tax code.
"You can't very well claim there was a mandate in this election for tax reform," said Senator Jon Kyl of Arizona. "It was just one of many ideas, and it wasn't specific. There is no consensus in the country about what to do."
