The speaker said the overhaul should apply to personal and corporate taxes but shouldn't be used to raise revenue. "Tax reform should include closing loopholes, not for purposes of bringing more money to the government, but because it's the right thing to do," he said.
Mr. Boehner and other Republicans have argued that any revenue raised from closing loopholes should be used to lower tax rates for individuals and corporations, not for additional government spending. They believe lowering tax rates would spur the economy and job creation.
See. Cancellation of tax privileges will increase tax revenues, which will be offset by lower tax rates. Net effect is zero. Ie. budget neutral. What then is the stimulating effect for the economy and “job creation”?
As a result, minus? Отнють. The effectiveness of different fiscal policies can be assessed in different ways. But my understanding is this, that tax policy is much less effective than, expenditure policy. That's why, that the level of lobbying is significantly higher here.
Hence the conclusion. Even in principle, a good initiative has to be disguised under all sorts of political slogans..
Good and bad initiative separately. In the current environment, two are good: 1) direct government spending; 2) simplification of tax policy. Neither that, neither is possible. In the same time, partial execution No. 1 – it is worse, than not performing it at all. In the case of # 2, the opposite is true.