A tax hit list for the 113th Congress
As Congress ponders whether it can reach agreement to avoid the so-called “fiscal cliff,” this paper argues that, in addition to identifying credits, deductions, and exemptions that could be eliminated in order to lower marginal rates, fundamental tax reform should target unwise tax structures that simply shouldn’t exist in a code that promotes growth and job creation.
The current code contains several forms of double-taxation that serve to punish investment while encouraging complicated tax avoidance procedures. No matter how politically convenient as a means of raising revenue, these types of policies should be eliminated – along with other distorting preferences – to put our tax system on a more neutral footing. In that vein, the paper proposes complete elimination of federal tarriffs, the estate tax and the corporate income tax