Nov 23, 2015
Tax Extenders: An Ill-Conceived Washington Tradition
Post by Freedom Partners
Congress will soon consider a package of tax extenders that mostly helps the wealthy and well-connected. Freedom Partners President Marc Short and Senior Policy Adviser Andy Koenig explain why that’s a bad idea in the March 23 edition of The New York Times.
Giving Billions to the Rich
IT’S that time of year again, when Republicans and Democrats put aside their differences to dole out gifts of corporate welfare to a lucky few.
Congress will soon take up the so-called tax extenders package, which has more than 50 tax breaks affecting a variety of industries and issues. Lawmakers will undoubtedly spin this as a tax cut that will benefit hardworking Americans and improve our economy, but the reality is that this bill mostly helps the wealthy and the well connected.
It’s been this way for nearly three decades. The first tax-extender package — the Technical and Miscellaneous Revenue Act of 1988 — wrapped together several tax breaks that had expired the year before, reauthorizing them for another year. Initially supposed to be temporary, it opened a door that lobbyists and lawmakers were all too willing to run through ….
Washington should just abandon this ill-conceived tradition. There are better ways to amend the tax code to improve the economy and give taxpayers relief. Members of both parties claim they support tax reform that would lower both corporate and individual tax rates. This is the best path for all involved: Replacing extenders with lower, simpler rates would enhance American businesses’ international competitiveness and put more money in regular taxpayers’ pockets.