Tax Reform Won't Cure Our Growth Problems
Posted at 9:45 a.m. on Nov. 19, 2012
Ezra Klein rounds up research on past tax reforms and recent comments by economists that show little reason to believe that a tax reform plan will boost economic growth.
“Washington policymakers are debating an approach — broadening the tax base through closing tax expenditures, credits and deductions — that isn’t likely to do much at all… if you’re not cutting total taxes — the ‘effective marginal tax rate’ — you’re not going to drastically alter the incentives people have to work. As a result, you’re not going to see much added growth from tax reform, especially if the revenue contributed by various groups remains largely unchanged.”
