Now, I agree that our tax system should be revamped. This system is a nightmare of double taxation of income and grotesque horizontal inequities in which—thanks to a labyrinth of politically motivated tax breaks and credits—taxpayers earning the same incomes don’t pay the same amount of taxes. The result is a system that penalizes work, saving, and investment and in turn dampens economic growth.
As such, I would first and foremost eliminate all tax breaks and other preferences that tilt the playing field in favor of politically connected interest groups. Our tax code would be radically improved if it weren’t used by politicians to subsidize certain behaviors while penalizing others. Incentives such as those to buy electric cars and bicycles, or to invest in (insert preferred industry here) are unfair, distortive, and often fail to achieve their stated goals. They should have no place in our tax code.
[This is why a flat tax system or a consumption tax system — but not both at the same time — would be far preferable to the current status quo. It’s also why Congress will never vote for either one. — Ed]
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