EconPapers    
Economics at your fingertips  
 

Reflections of the Holland Medal Recipient: Perils of Tax Reform

James Hines ()

National Tax Journal, 2018, vol. 71, issue 2, 357-376

Abstract: Tax reforms dangle possibilities of improving the tax system, but are fraught with perils that are evident from the 2017 U.S. experience and caution against frequent reforms of its ilk. The first peril is that reforms containing tax provisions selected simply on the basis of their projected revenue contributions will produce less tax revenue than anticipated, illustrative calculations suggesting shortfalls of roughly 8‐16 percent. The second peril is that reforms will not advance the objectives of efficiency and tax equity to the extent that they include provisions intended to influence future tax legislation or government spending. The third peril is that reforms designed without sufficient appreciation of transitional gains and losses will offer inadequate and misdirected transition relief. And the fourth peril is that reforms stoke expectations of future tax changes, discouraging investment and encouraging costly tax avoidance. Tax reforms that apply sound principles will reduce or even avoid these perils.

Date: 2018
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.ntanet.org/NTJ/71/2/ntj-v71n02p357-376-Perils-of-Tax-Reform.html (text/html)
Access to most recent volumes (current and past two years) is restricted to subscribers and members of the National Tax Association.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ntj:journl:v:71:y:2018:i:2:p:357-376

Access Statistics for this article

National Tax Journal is currently edited by Stacy Dickert-Conlin and William M. Gentry

More articles in National Tax Journal from National Tax Association, National Tax Journal Contact information at EDIRC.
Bibliographic data for series maintained by Sally Sztrecska ().

 
Page updated 2019-08-20
Handle: RePEc:ntj:journl:v:71:y:2018:i:2:p:357-376