Monday, October 11, 2004

The abominable Republican tax break strategy

Republicans who are for tax breaks have come up with even more loopholes, which Washington Post columnist Steven Pearlstein calls
so laden with with subsidies, and so infused with government industrial policy, that any Eurocrat would be proud to call it his own.

To me, such "tax breaks" are really a backhanded form of income redistribution. As I've stated before in this blog, I prefer the Fair Tax proposal, if for nothing else other than its simplicity and transparency. I abhor the use of the tax code to benefit powerful companies or penalize critics of any particular politician.

Arnold Kling of Econlib has started a good discussion.