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UPDATE 1-Volcker panel to study tax reform, report to Obama

Published 03/25/2009, 10:57 AM
Updated 03/25/2009, 11:16 AM

(Adds details from conference call)

WASHINGTON, March 25 (Reuters) - A panel led by former Federal Reserve Chairman Paul Volcker will study options for U.S. tax reform and report back to President Barack Obama by Dec. 4, the White House budget director said on Wednesday.

Peter Orszag, director of the White House's Office of Management and Budget, said the panel would study tax simplification, tackling tax evasion, and reducing "corporate welfare."

He said the board would look at streamlining U.S. tax credits and being more aggressive at bringing in some $300 billion in annual uncollected tax revenues.

"There are hundreds of billions of dollars in uncollected taxes each year," Orszag told a conference call with reporters.

"The task force on tax reform that will be formed by the Volcker board will be examining ways of being even more aggressive on reducing the tax gap."

Volcker was chairman of the Federal Reserve during the Carter and Reagan administrations. He is now chairman of President Barack Obama's new Economic Recovery Advisory Board.

Orszag said the board would select a task force to study tax reform. He said Obama would like to see board members Laura Tyson, Martin Feldstein, Roger Ferguson and William Donaldson as part of that team.

(Reporting by Jeff Mason; Editing by Eric Walsh)

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