Tax Policy Changes

Some believe that the uncertainty caused by the extension of certain tax cuts are economically harmful to our society. These individuals think that the legislators who do choose to extend these tax cuts should consider several aspects before making the decision to extend one of these tax cuts. 

• Does the tax cut address a need that requires government involvement?
• Is the tax cut effective?
• Is the tax fair?
• Does the tax provide any other benefits?

According to these individuals, legislators also need to reform the manner in which they examine expiring tax provisions. 

• These individuals think that legislators should allow provisions that are about to expire to expire unless its supporters can come forward with enough reasons for why it should be extended.
• They also think that the provisions of a tax should be reviewed individually and not as a whole.
• Finally, legislator should modify how the budget rules apply to temporary tax cuts.

See Donald Marron, The ‘Tax Expirers’, Forbes, June 9, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.