Tax Reform Won't Solve All Our Problems
Ezra Klein thinks Washington is investing too much in this idea
By Kevin Spak, Newser User
Posted Nov 15, 2012 1:10 PM CST
House Speaker John Boehner of Ohio calls on a reporter during a news conference on Capitol Hill, Nov. 9, 2012.   (AP Photo/Susan Walsh)

(Newser) – Both sides on Capitol Hill are embracing the idea of tax reform as a solution to the deficit crisis. John Boehner recently assured us that simplifying the code would "support economic growth," improve efficiency, and generate more revenue besides. "That’s the Washington consensus on tax reform: It slices, it dices, it cleans up after itself," quips Ezra Klein over at Bloomberg. "But that’s not the economic profession’s consensus." No, economists mostly believe that reform, while nice, won't do much to promote economic growth.

"I am not familiar with any tax reform that raised growth, here or anywhere else," one former Reagan adviser says. Basically, the economists say that unless you're actually reducing total taxes—rather than performing a revenue-neutral cleanup—it won't contribute much to growth. Many economists are optimistic that it would improve efficiency, and "everyone agrees that it can help a bit," Klein says. But its main benefit is that "it gives Republicans a face-saving way to do what needs to be done: raise taxes." Click for his entire piece.

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kawahchan
Nov 16, 2012 10:14 AM CST
(R) 2014 & 2016 Gov. RICK PERRY Report: House Speaker JOHN BOEHNER should understand better than that these coming 4 more years of the Democrats' Frustration, American people will either get Obama-Biden's VETOs to against Republicans & TEA; or keep silence to comply the SuperCommittee's budget cuts, because the fans of Obama's re-election should accept Obama's another round of TRILLION$ national debt, borrowing money to run his presidency before they re-elected him (Obama lame-duck 2013-2016). So far, California public education realize the (D) Gov. Jerry Brown's Prop. 30 is no more than just a blank-check, WON'T solve the real education budget; (Prop. 30) it passed by the (Democratic) Voters, too late to yell or cry for that, those who are leaning on the annual income $250,000 Employer's employment (the 2-year A.A. degree graduates).
char
Nov 16, 2012 6:47 AM CST
The RNC should have stayed out of the election process and let the People nominate THEIR choice, Ron Paul. He would have been elected and saved the economy. Instead, they ignored the voice of the voters and illegally handed us a candidate we could not support. THAT'S the problem with this election, Repubs; nothing more, nothing less. Recognize it and deal with it or you may soon be history.
char
Nov 16, 2012 6:46 AM CST
Three words: END THE FED!!