Interest groups and tax reform

Source: Independent Institute
by Randall Holcombe

“In a recent post in The Beacon, I said that President Trump’s tax reform proposal is a move in the right direction. But I find part of it very troubling: He wants to keep the mortgage interest deduction and the deduction for charitable contributions for individual taxpayers. Both of these deductions have reasonable justifications, but so do a host of other deductions; both those in the current tax code and some that various interest groups would like to see added. Arguing that these two should be kept rather than eliminating all deductions speaks to the power of the interest groups that support them. That tells us right away that any tax reform that does occur will be shaped by special interests, and that additional interests are likely to enter the tax reform conversation to modify the tax code for their own benefit.” (05/01/17)

http://blog.independent.org/2017/05/01/interest-groups-and-tax-reform/