Covering the Economy: March 7: Tax Day!

"Don't tax you, don't tax me, tax the guy behind the tree!"--Russell Long, Senate Finance Committee Chairman

"The art of taxation is like plucking a goose: to get the most feathers with the least amount of hissing."--Jean-Baptiste Colbert, French Finance Minister

Our tax system:

Washingtonpost.com: Tax Policy Special Report : Tax Policy: Ripe for Reform? By Dan Froomkin Washingtonpost.com Staff Updated April 28, 1998 : "The U.S. tax code is phenomenally complicated, not entirely fair -- and takes money out of your pocket. What's to like?"

An example of unfairness:

Who Needs the Mortgage-Interest Deduction? - New York Times : By ROGER LOWENSTEIN: "One of the first financial lessons I learned from my father was that when you buy a house, you get a tax break from deducting the interest on your mortgage. Therefore, he would explain as if it were as natural as pivoting at second base on a throw from shortstop, a person could afford to pay more for a house that he owned than he would on a residence that he was only renting and on which he didn't get the tax break."

Taxes are almost surely going up:

William G. Gale and Peter R. Orszag (2004) "The Budget Outlook: Projections and Implications", The Economists' Voice: Vol. 1: No. 2, Article 6. http://www.bepress.com/ev/vol1/iss2/art6

The tax reform rugby scrum:

Edward P. Lazear and James M. Poterba (2006) "Reforming Taxes to Promote Economic Growth", The Economists' Voice: Vol. 3: No. 1, Article 3. http://www.bepress.com/ev/vol3/iss1/art3

Alan J. Auerbach (2006) "The Tax Reform Panel’s Report: Mission Accomplished?", The Economists' Voice: Vol. 3: No. 1, Article 5. http://www.bepress.com/ev/vol3/iss1/art5

Leonard E. Burman and William G. Gale (2006) "The Tax Reform Proposals: Some Good Ideas, but Show Me the Money", The Economists' Voice: Vol. 3: No. 1, Article 4. http://www.bepress.com/ev/vol3/iss1/art4

Michael J. Graetz (2006) "Tax Reform: Time For a Plan C?", The Economists' Voice: Vol. 3: No. 1, Article 2. http://www.bepress.com/ev/vol3/iss1/art2

Michael J. Boskin (2006) "A Broader Perspective on the Tax Reform Debate", The Economists' Voice: Vol. 3: No. 1, Article 1. http://www.bepress.com/ev/vol3/iss1/art1 http://www.bepress.com/ev/vol3/iss1/art4