Show Us Your Tax ReformsIssue 04-10-17 |
The last "huge" tax reform occurred in the mid-1980s, when the Ronald Reagan administration managed to slash top tax rates almost in half. That revision took five years of study, planning, and implementation. Since then, rates have incrementally crept higher. President Donald Trump is proposing to again push rates back. To pay for the reduction, with other than a deficit increase, a number of proposals are being floated. Each is being met with a round of rebuke by those who stand to be hurt by the alternative revenue-generating proposal.
The optimism that a magic formula exists to solve the tax ills is fading. There is a simple reality in tax policy and reform, and that is that the status quo has a stronger position than any proposal. It takes a mighty strong case to move the democratic process to change tax law. This article, "Show Us Your Tax Reforms (Bloomberg Businessweek, March 30, 2017), quotes a number of experts, and in one form or fashion, this is their consistent message.