Tax Reform and 2012 U.S. Presidential Politics

摘要

"What is so far lacking in the tax reform effort is a compelling reason to enact any actual reforms, as opposed to cutting taxes again or just extending the Bush tax cuts for another year or two. Unfortunately political tactics are also a barrier to a deal. With 2012 being a presidential election year, both parties would like to be on the winning side of the tax issue. But what is the winning side?In principle, everyone favors tax reform-as long as it doesn't take away their favorite deduction or credit or raise their taxes in any way. In principle, everyone favors tax simplification, base broadening, and lower rates. And in principle, everyone favors reducing the deficit, and a solid majority even support increasing taxes-as long as it's not on them. Action before the election is unlikely because both parties will want to campaign on tax reform, hoping that the election results will strengthen their hand.