by William McBride
October 31, 2013
After years of slow economic growth and a burgeoning tax code, many in Congress and elsewhere have recognized that now is the time for tax reform. Unfortunately, the political process is often at odds with reform, because it tends to protect the status quo, including the tendency to use the tax code to implement industrial and social policy rather than using it simply as a way to raise revenue. Meanwhile, the U.S. tax system has become less and less competitive as the rest of the world works to reform their tax codes. If the U.S. is to regain its standing and return to robust economic growth, it will need to first acknowledge the areas of the tax code that are the least competitive and most problematic in terms of complexity. The following are twelve steps that should be taken toward a simpler, pro-growth tax code.