Is it time for tax reform instead of tax relief?
Should we consider a fair tax?
How can we combat special interests that want carve outs?
Governor Mike Huckabee is the only candidate who would effectively do away with tax loopholes by eliminating the income tax altogether. Huckabee is a long-time supporter of the FairTax, a national retail sales that would not only replace the income tax but also abolish the Internal Revenue Service, which Huckabee says is his best audience applause line.
The real hurdle to tax reform is the special interests that benefit from the various carve-outs. These are the same special interests the candidates court as donors and supporters. The wealthy, who benefit the most from tax preferences, devote substantial resources to assure their longevity. Hence, tax reform is a pipedream.
A few years ago, the Campaign to Fix the Debt, a non-partisan group of deficit hawks, announced with great fanfare that 100 business leaders, including GE’s Jeffrey Immelt, had signed a petition supporting an effort to address the nation’s burgeoning debt. Some of the CEOs gathered at the New York Stock Exchange on Oct. 25, 2012, to ring the opening bell. They held several telephone press briefings to garner support.
On the calls, I heard all the usual platitudes – “shared sacrifice,” “for the good of the country” – but little in the way of specific proposals. I wanted to know which of the CEOS would be the first to commit publicly to end all lobbying for industry- and company-specific tax breaks. Silence, some laughter, no volunteers.
When it comes to real sacrifice, shared or otherwise, no one, it seems wants to be the first-mover – especially when moving first yields no obvious advantage.
Source: Tax Reform Would Be the Best Form of Tax Relief | Economics21