Dynamist Blog

TAX ANTI-REFORM

Over at The Volokh Conspiracy, Jacob Levy calls the Senate's moronic proposal for a three-year moratorium on taxes on dividends paid to individuals "Worst. Tax. Cut. Ever." I'd need to do more research to agree with such a sweeping statement, but he's definitely on to something. When a tax "cut" is so temporary and targeted, the paperwork and computer-reprogramming alone constitute enormous hidden tax. The congressional process has taken a good idea for fundamental tax reform and turned it into short-term, wildly distortionary vote-buying with absolutely no economic rationale. It's just one more example of why anyone with a brain inevitably develops contempt for Congress.

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