endless tax reform loop
I’ve got a joint book review in today’s New York Post on the various tax reform plans floating around. My section’s the review of Alan Auerbach and Kevin Hassett’s book Toward Fundamental Tax Reform. Bottom line:
Unfortunately, much of the book ignores the real problem of tax reform. How can we make it last? Even if we start with a perfect system, what stops Congress from mucking it up over time, as they did with the 1986 reform and all other previous efforts?
Tax handouts are the opiate of the legislator, and any reform that doesn’t shackle congressional access to the tax trough — for example, by requiring super-majority voting on tax changes — is doomed.
Sadly, constitutional restraints on tax handouts won’t happen anytime soon. So ultimately, there’s no need to worry if tax reform stumbles this year. It will surely be back soon.
Posted by Andrew on Sunday October 23, 2005 | Feedback?
