The Tax Game

I am stepping away from the tax game. Over 42 years of practice I have formed opinions on what makes for good tax policy. I have been reluctant to share some of them publicly. A tax provision that might be poor tax policy could still be great for a client—and good for a firm that helps clients use it. Don’t blame the players, blame the game.

I’m here to talk the game.

Here I will address principles of sound tax policy that I have come to embrace. Remember, this is policy, not physics. These principles aren’t mathematical axioms. One might conflict with another. Good tax policy may not be good public policy. Trade-offs are everywhere.

While I have strong views, I try to remember that I have been wrong and may be still. I'm not always good at that sort of humility.

That said, I find these to be useful yardsticks for tax laws and proposals:

• Broad bases and low rates are best.

• Simplicity is fairness.

• Not every problem calls for a tax solution.

• Everything in the tax law that isn’t specifically about efficient revenue raising makes things worse, as a tax law.

• Enact no tax breaks that are too small to enforce.

• Ability to pay is critical, but distribution tables alone are a poor basis for tax policy.

• Governments can and should spend less, but should tax enough to pay for their spending.

There is a lot of overlap in these principles. You are welcome to join me in working through how these principles apply to the tax law we have and to proposals to change it.

The views here are mine alone. They are not to be considered the views of any firm, person, faith tradition, polity, organization, extended family, or other assemblage that I am or have ever been associated with. Nothing here is tax advice to you, dear reader.