Tax Reform

The new tax reform commission met this week in San Diego. There have been high hopes that the commission might produce a new tax blueprint for the state. But the first meeting was a bit of a struggle, with a lack of consensus on what the commission's focus should be, according to Joel Fox, who was there and provided this report at Fox & Hounds Daily.

Ordinary Americans may not realize how closely linked their health care is to the U.S. tax code, but a bevy of analysts and economists could give them an earful. The major health reform plans on the table involve changes—in some cases pretty significant changes to tax treatment of health insurance, particularly the tax breaks for insurance we get through our jobs.

The tax code is a mess. Even those pointy-headed economists that can bicker about anything (except the gas tax) agree that it is too complicated. They cry in virtual unison that the growth of tax deductions, credits, and deferrals leads to inefficiencies and market distortions (yikes!).

To confirm these fears, we need look no further than the education arena. Do you know how many tax provisions there are designed to support post secondary education and workforce training? It's a long list.