Source: Reason
by Veronique de Rugy
“The U.S. tax code is broken. That’s mainly because it collects revenue in an arbitrary, distortionary, and unfair manner. At the heart of the problem are ‘tax expenditures’: credits, deductions, and loopholes that benefit the government’s favorite groups and behaviors. These provisions make the tax code more complicated, less neutral, and less growth oriented than it ought to be. Worse, they shift the burden onto the unfavored groups, requiring higher rates to make up for revenue lost to carveouts. This isn’t just a matter of accounting or administrative complexity; it’s a matter of morals. As the late economist David Bradford observed, our tax code reflects no coherent philosophy.” (04/10/25)