Tax Reform - Tool for Social Engineering or Economic Growth?
I have always thought that our government's tax policy should be driven by its positive impact on economic growth and that it should not be used for social engineering. If tax policy successfully increases economic growth, economic opportunity increases. Economic opportunity is the best way for individuals to progress from one socioeconomic status to the next. Look around and I am sure you can easily identify many individuals where economic opportunity translated into economic success.
Tax reform is a hot topic again as Washington appears to be serious about reforming our burgeoning tax code. On September 27, the Trump Administration, in conjunction with the House Committee on Ways and Means and the Senate Committee on Finance, released a document titled, "United Framework for Fixing Our Broken Tax Code." This framework is meant to serve as a template for tax reform and for the tax-writing committees that will develop legislation through what they assert will be "a transparent and inclusive committee process."
What direction will this legislation take? Will it be weighted towards social engineering (as the most recent changes to our tax code have been) or economic growth? In this article, Investor's Business Daily weighs in on this subject and, in my opinion, makes some excellent points. Taxes impact everyone. I encourage you to read this article and closely follow the progress of this latest tax reform effort.