Bush Panel in Broad Agreement to Cut Investment Tax (Update1)

Oct. 11 (Bloomberg) -- The financial-services industry is poised to emerge a big winner from the recommendations of President George W. Bush's tax advisory panel, where a consensus is building to eliminate or reduce taxes on investment income.

The panel holds its second-to-last meeting in Washington today to hone its final recommendations, due to be delivered to the Treasury Department by Nov. 1. Panel members said in interviews they have reached a broad agreement to make it easier and less costly for Americans to invest in financial markets.

``All of us would like to get taxes on investments to a reasonably low level, particularly dividend and capital-gains returns,'' said member Bill Frenzel, a former Republican congressman from Minnesota who is now a scholar at the Brookings Institution in Washington.