Monday, February 20, 2012
As it is trying to promote tax reform, the Obama administration is defying the logic of real tax reform -- the economic logic that tax neutrality is best for growth and job creation except in extraordinary circumstances. What administration incentives hinder true tax reform efforts? A conversion of the already complicated section 199 manufacturing deduction into a two-tiered incentive. A temporary incremental wage credit for small business. A tax credit for investment in communities that have experienced a job loss event. A tax credit for moving expenses when companies move jobs to the United States. New tax credits for alternative energy to replace the existing ineffective and outdated ones.
This is big government through tax policy. The complexity of these new tax breaks is extraordinary even by the standards of our tax code. These items are small potatoes that are unlikely to ever become law anyway. Geithner should file them away. It subtracts and distracts from his main goals of raising revenue by eliminating loopholes and making the tax system more progressive. And as for the coming corporate tax reform, there is no more place for them there than there is for a fox in the henhouse. ...
2008 was economic hell. The markets crashed. The economy tanked. Jobs disappeared by the millions. But at the choice locations listed below, folks were doing fine. ...
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