Tax Reform Idea That Makes Sense
I don’t think many people would argue that current U.S. tax laws are understandable or make common sense. However, it seems that two U.S. Senators have hit upon a common sense process that might reform the hodgepodge tax system we have now.
In a press release they sent out on June 27, Senators Baucus and Hatch have proposed that the Senate take a “clean slate” approach to revising the tax code. That is, they want to start with a basic tax code and then add back into a bare bones tax system only provisions that:
1. Help the economy to grow
2. Make the tax code fairer, or
3. Effectively promote other important policy objectives.
They have asked their colleagues to keep this keep this in mind as they consider tax reform legislation. It’s the last criterion that worries me. What the heck is “other important policy objectives”? Still, I hope this will be a good start to something simpler and better (as opposed to bigger and worse).