Kudlow's thoughts on the Bush Tax Reform commisson

Larry Kudlow has some good observations on the President's Tax Reform commision. I agree with him that a simplified "Reaganesque" tax structure would be a good place to start.
Some supply-siders are already grousing: the membership of the new tax group is uninformed, the July 31 timetable is too short, public hearings around the country will be too time-consuming, the President’s instructions to maintain tax deductions for mortgage interest and to charitable contributions will limit the scope of the tax reform product. But realists have never expected a pure flat tax or a national sales tax to come out of this exercise. Instead, as Nobelist Ed Prescott has argued, a simplified Reaganesque 15% and 28% tax regime would fit key criteria: it would be pro-growth, rates would be flattened, rules would be simplified and reduced, and revenue neutrality could be achieved with even modestly dynamic revenue scoring along with the elimination of the myriad numerous unnecessary tax credits and deductions.

It's worth the time.

TrackBack URL for this post:


What do you think?

Comment Policy

<< Home