George Washington law professor and economist Neil H. Buchanan provides political context for the latest Republican-backed tax reform package. He highlights how the authors of an “open letter” to “Senators and Representatives” that recently made the rounds, and which attempted to solicit signatures of other Republican economists, deliberately misused numbers and employed sleight-of-hand wording to declare that corporate tax cuts would stimulate economic growth, lead to more jobs, and increase American wages. Buchanan counters each of the letter’s assertions in turn, illustrates how its stated economics is ultimately faulty, and fixes a critical eye on the economists who so willingly set aside intellectual integrity to appease the well-financed Republican powerbrokers who support these tax cuts.
Cornell University law professor Sherry F. Colb considers a provision of the proposed statute in the House version of the latest tax reform bill that would have allowed expectant parents to take a tax deduction on college fund investments for their offspring. Colb notes the negative response to this provision among pro-choice advocates as a result of how the provision’s language equates a fetus with a child. While acknowledging the worry among abortion rights proponents that such wording might provide a legal foundation for future attempts to restrict women’s rights to terminate their pregnancies, Colb counters this concern by explaining why it is unlikely that the language in the tax bill would have any effect on the legal status of abortion.
George Washington law professor and economist Neil H. Buchanan discusses politicians' current fixation on the budget deficit and argues that Democrats who take an anti-deficit stance to attack the Republican tax bill are playing right into Republicans’ hands. Buchanan explains why blanket declarations about decreasing the budget deficit as a tax reform fix-all are problematic and cautions Democrats (along with journalists who report on tax reform issues) to be mindful of the arguments they choose when countering Republicans.
George Washington law professor and economist Neil H. Buchanan continues his discussion of tax reform, suggesting that a starting place for meaningful reform would be to tax wealth more effectively, tax unrealized gains, and eliminate the preferential tax rates for investment income. Buchanan points out that even modest changes in these areas would significantly address the problem of growing economic inequality in our country.
In this first of a series of columns on tax reform, George Washington law professor and economist Neil H. Buchanan describes a few items that should not be seriously considered in attempting to improve the status quo. Buchanan argues that the notion of a complete overhaul of the tax code, and the proposal that the tax code should be “simpler,” ignore important considerations and distract from real issues.