A handful of moderate Democrats led by Senator Max Baucus of Montana persuaded the Republican leadership to scale the size back to $1.35 trillion and add some provisions favoring taxpayers of moderate means.
The idea of making the payroll tax deductible has been considered, but discarded, in Congress, both because it is highly expensive and because deductions favor taxpayers in upper brackets.
Under questioning, he later said these were not the only conditions under which he would favor taxpayer financing of private school tuition.
Mr. Golisano said he favored using taxpayer money for vouchers to allow parents to enroll children in schools of their choosing, but said he did not view vouchers as a broad solution.
Among the advisers is David Hartnett, a former British permanent secretary for tax who was criticized in 2011 by British lawmakers for favoring corporate taxpayers, including Goldman Sachs, and overseeing a mistake in calculating interest owed.
The report singled out David Hartnett, the permanent secretary for tax, for favoring corporate taxpayers in his negotiations and overseeing a mistake in calculating the amount of interest owed on late tax payments.
The report singled out David Hartnett, the permanent secretary for tax, as favoring corporate taxpayers in his negotiations and overseeing a mistake in calculating the amount of interest owed on late tax payments.
Proponents argue that it would be simpler and fairer than the traditional income tax, because it would not provide the opportunities for loopholes and sophisticated tax-reduction schemes that tend to favor wealthy taxpayers.
If the Tax Court holds that the IRS can't cancel the APAs, the Service might find that it's bound to honor deals that heavily favor corporate taxpayers, causing serious harm to the fisc and the federal financial outlook.
The findings come as President Obama and other critics have accused Republican nominee Mitt Romney's tax proposal of favoring wealthy taxpayers at the expense of the middle class.
