Elizabeth Williamson and Neil King profile Rep. Dave Camp (R-Mi.), who’s going to run the Ways and Means Committee, and who’s
actually saying provocative things
about fundamental tax reform. When I talked to
Sen. Ron Wyden about tax reform
, he suggested that Camp might be on board, and that he could make it happen if he was serious. This profile points us to
Camp’s speech last week
before the Tax Council. He sounded serious.
I aim to launch and fight the tax reform battle once again. And, I am well aware that this might ruffle those who have used the tax code to benefit particular industries or activities at the expense of economic efficiency, simplicity, and fairness. The tax code should collect the revenue the government needs as efficiently as possible. It should not be a tool of industrial policy. I recognize that progress in this direction will not be easy. But what Washington needs to understand is that the American people are demanding action, and, more importantly, they are demanding results.
Here are my principles of reform: fairer, simpler, and conducive to growth. While I don’t think the following questions are necessarily exhaustive – and of course they can sometimes lead to conflicting answers – they are the kinds of questions Washington needs to be asking:
Is the code simple enough for families and employers to allow for the efficient collection of necessary revenue or does complexity drive rates even higher and discourage productive economic activity?
Does the tax code create the incentive for companies to spend vast sums on creative tax planning rather than on growing and creating jobs?
Is the code reasonably flat or does it have a seemingly ever escalating number and level of rates that discourage work, savings, and investment?
Does the tax code try to dictate social and economic behavior by individuals Washington deems important by offering financial rewards or penalties in the tax code?
Does the tax code level the global playing field for American employers, or does it put endless obstacles in front of them?
Does the tax code treat employers and industries fairly or does it favor those who happen to be in fashion in Washington?
Some have used the term crony capitalism. While I did not coin the phrase, I want to end it.
This is a big reason I think
Wyden is being dismissed too soon
.
