The Lords of the Theft

Is the Time Right for Tax Reform?

Tax Foundation President Scott Hodge recently published an article (it can be found here) on the opportunity he sees for federal tax reform during the next administration — regardless of who wins. He puts it this way, “For the first time since 1986, the stars may be aligning for a grand bipartisan compromise on fundamental federal tax reform.”

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Tax reform and lower tax rates are critical steps to help keep our entrepreneurial economy expanding over the coming decades.

The article outlines what Hodge believes are the five basic steps for politically realistic tax reform:

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Step 1: Eliminate tax exemptions and deductions. Step 2: Make any tax reform a tax cut and tax simplification. Step 3: Continue to shield low-income earners with a super-deduction. Step 4: Make everyone a stakeholder. Step 5: Fend off the special interests.

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My take — unfortunately any progress on simplification will inevitably get undone because politicians do not want to fend off special interests. Politicians live off of special interests — the money from K Street is what makes Washington tick.

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