The President's Advisory Panel on Tax Reform met May 11 and 12 to discuss specific proposals, which had been publicly submitted to the panel during a brief comment period, for reforming the federal tax code. The two-day hearing covered some of the plans submitted and heard testimony from a number of tax experts and advocates. Notably, the panel expressed overwhelming skepticism regarding proposals that would fully repeal the federal income tax in favor of a national sales tax or other system. Panel Chairman Connie Mack and Vice Chairman John Breaux both questioned witnesses on the practicality and progressivity of a national sales tax. Breaux observed a sales tax would have to include complex rebates and incentives in order to make the system more progressive, while Mack challenged witnesses on compliance levels. Members of the panel were quick to point out that no country has adopted a national system of taxation centered around a sales tax, most likely for a good reason. Thomas Wright of the conservative advocacy group Americans for Fair Taxation was one of the most outspoken witnesses pushing a national sales tax. While Wright suggested a 23 percent sales-tax rate would bring in sufficient levels of national revenue, Breaux disagreed, saying the Tax Policy Center had proven a sufficient rate of taxation would be much closer to 30 percent. Mack was overtly skeptical about compliance rates, telling reporters during a break that compliance has always been an issue with a national sales tax. Wright acknowledged "people will cheat, as they do today," but argued tax evasion would be significantly less than it is under the current system. Besides discussing proposals for a national sales tax, the panel also heard testimony about the value-added tax, the consumed-income tax, the flat tax, and additional proposals for reform. John Podesta, president of the Center for American Progress (CAP), presented the panel with the center's Progressive Tax Plan. CAP's proposal promotes fairness, simplicity, and overall economic growth -- the three main tax-reform goals President Bush stated he wants to achieve. The second half of the two-day meeting focused less on specific plans and more on how businesses and international transactions should be taxed. The panel will hold a ninth meeting May 17 at the Georgetown University Law Center. Witnesses will evaluate tax reform proposals and discuss issues associated with "return-free" filing. Information and supporting documents from all previous panel meetings can be found on OMB Watch's tax panel webpage.