By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, and to assist in reforming the Federal 
                Internal Revenue Code to benefit all Americans, it is 
                hereby ordered as follows:

                Section 1. Establishment. There is established the 
                President's Advisory Panel on Federal Tax Reform 
                (Advisory Panel).

                Sec. 2. Membership. (a) The Advisory Panel shall be 
                composed of up to nine members appointed by the 
                President.

                    (b) The President shall designate one member of the 
                Advisory Panel to serve as Chair and one member to 
                serve as Vice Chair.

                Sec. 3. Purpose. The purpose of the Advisory Panel 
                shall be to submit to the Secretary of the Treasury in 
                accordance with this order a report with revenue 
                neutral policy options for reforming the Federal 
                Internal Revenue Code. These options should:

(a)

 simplify Federal tax laws to reduce the costs and administrative burdens 
of compliance with such laws;

(b)

 share the burdens and benefits of the Federal tax structure in an 
appropriately progressive manner while recognizing the importance of 
homeownership and charity in American society; and

(c)

 promote long-run economic growth and job creation, and better encourage 
work effort, saving, and investment, so as to strengthen the 
competitiveness of the United States in the global marketplace.

                At least one option submitted by the Advisory Panel 
                should use the Federal income tax as the base for its 
                recommended reforms.

                Sec. 4. Administration. (a) The Department of the 
                Treasury shall provide, to the extent permitted by law, 
                administrative support and funding for the Advisory 
                Panel. The Advisory Panel is established within the 
                Department of the Treasury for administrative purposes 
                only.

                    (b) The Chair of the Advisory Panel shall convene 
                and preside at the meetings of the Advisory Panel, 
                determine its agenda after consultation with the Vice 
                Chair, and direct its work. The Advisory Panel shall 
                have a staff headed by an Executive Director who shall 
                be selected by the President and report to the Chair.
                    (c) Members of the Advisory Panel shall serve 
                without compensation for their work on the Advisory 
                Panel. Members of the Advisory Panel who are not 
                officers or employees in the executive branch, while 
                engaged in the work of the Advisory Panel, may be 
                allowed travel expenses, including per diem in lieu of 
                subsistence, as authorized by law for persons serving 
                intermittently in Government service (5 U.S.C. 5701 
                through 5707), consistent with the availability of 
                funds.
                    (d) Consistent with applicable law, heads of 
                executive departments and agencies shall provide to the 
                Advisory Panel such assistance, including assignment or 
                detail of personnel, and information as may be 
                necessary for the Advisory Panel to perform its 
                functions.
                    (e) The Advisory Panel may conduct meetings in 
                appropriate locations throughout the United States to 
                obtain information and advice from Americans of diverse 
                backgrounds and experience and from a diverse range of

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                American entities, including large and small for-profit 
                and non-profit organizations, State, local, and tribal 
                governments, and from other individuals and entities as 
                appropriate. Public hearings shall be held at the call 
                of the Chair.
                    (f) Insofar as the Federal Advisory Committee Act, 
                as amended (5 U.S.C. App.) (the ``Act''), may apply to 
                the Advisory Panel, any functions of the President 
                under that Act, except for those in section 6 of that 
                Act, shall be performed by the Secretary of the 
                Treasury in accordance with the guidelines that have 
                been issued by the Administrator of General Services.

                Sec. 5. Report. The Advisory Panel shall submit to the 
                Secretary of the Treasury a report containing policy 
                options in accordance with section 3 of this order as 
                soon as practicable, but not later than July 31, 2005.

                Sec. 6. Provisions. (a) Nothing in this order shall be 
                construed to impair or otherwise affect the functions 
                of the Director of the Office of Management and Budget 
                relating to budget, administrative, or legislative 
                proposals.

                    (b) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity, against the United 
                States, its departments, agencies, entities, officers, 
                employees or agents, or any other person.

                Sec. 7. Termination. The Advisory Panel shall terminate 
                30 days after submitting its report pursuant to section 
                5 of this order.

                    (Presidential Sig.)B

                THE WHITE HOUSE,

                     January 7, 2005.