91°
Sunny
MON
 93°
 53°
TUE
 81°
 55°
WED
 82°
 55°
THU
 80°
 54°
FRI
 81°
 53°

Last hours to vote for the Best of Sonoma County finalists! Don't miss out!

Will: Taming the tax code beast

  • (SIGNE WILKINSON / Philadelphia Daily News)

“Colleagues,” said the June 27 letter to 98 U.S. senators, “now it is your turn.”

The letter’s authors are Sens. Max Baucus, D-Mont., and Orrin Hatch, R-Utah, the chairman and ranking Republican on the tax-writing Finance Committee, respectively. From their combined 71 years on Capitol Hill they know that their colleagues will tiptoe gingerly, if at all, onto the hazardous terrain of tax reform.

Together with Chairman Dave Camp, R-Mich., of the House Ways and Means Committee, Baucus and Hatch propose a “blank slate” approach, erasing all deductions and credits — currently worth more than $1 trillion a year — and requiring legislators to justify reviving them. Hence the Baucus-Hatch letter, in response to which almost 70 senators sent more than 1,000 pages of suggestions. Although some often were short on specificity, the submissions were given encrypted identification numbers and locked in a safe, as befits dangerous documents.

Every complexity in the four million-word tax code was created at the behest of a muscular interest group that tenaciously defends it. Which is why tax simplification would be political reform: Writing lucrative wrinkles into the code is one of the primary ways the political class confers favors.

Furthermore, “targeted” tax cuts serve bossy government’s behavior modification agenda: Do what we want you to do and you can keep more of your money. Simplification would reduce the opportunities for the political class to throw its weight around. Hence the flinch from simplification.

In 1986, however, Congress did not flinch.

In the last 40 years, finance, the Senate’s most important committee, has had formidable chairmen — Russell Long, Bob Dole, Bob Packwood, Lloyd Bentsen, Pat Moynihan and Baucus. And in 1986 there were additional serious reformers, including Sen. Bill Bradley and Rep. Dick Gephardt.

© The Press Democrat |  Terms of Service |  Privacy Policy |  Jobs With Us |  RSS |  Advertising |  Sonoma Media Investments |  Place an Ad
Switch to our Mobile View