Sunday, December 17, 2017

The Tax Bill

       First some full disclosure.  I am a Republican free market economist.  I believe in the importance of individual incentives and responsibilities.  I believe in limited government where reasonable.  I think the tax code should be as simple and transparent as possible.  For over 10 years, I have advocated a revenue neutral rewriting and simplification of the tax code to encourage saving, investment, and entrepreneurship and to reward hard work.

       Changing the tax code is a huge undertaking.  In personal terms, you can think of it as building a complicated house.  It can only be done every few decades.  The Republican party had a chance to deliver something of great value to the country.  With careful planning and forethought it could build a "dream house."  What they did was throw up a hastily built shack.  It is as complicated as what it replaces.  It is not revenue neutral.  It tends to favor corporate interests.  It is not supported by a majority of the American populace.

       My advice?  Tear it up and start again.  America does not need a shack, it needs the dream house.  I also see the current bill as a great threat to Republican politicians.  As all the leaks in the roof become apparent, the drafters will get blamed.  And when the fiscal house finally falls down, Republicans will be sent packing.

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