A common refrain is that the presidential election doesn't matter since there is little difference between the two main candidates, Tweedledee and Tweedledum. But that view is wrong. There are genuine differences between Bush and Gore in many policy areas, such as Social Security. However, sorry to say, they seem to agree on tax policy.

To be sure, it appears that Bush and Gore are on opposite sides on the tax issue. Bush is proposing a $1.3 trillion tax cut with its centerpiece an across-the-board reduction in tax brackets. Gore wants a more modest $500 billion package of targeted tax breaks.

Yet the two share a similar tax philosophy. Both like social engineering through the tax code. Gore believes in tax incentives to promote saving for college tuition and retirement. He wants tax breaks to encourage land conservation, ease the burden of buying health insurance, and help family's meet childcare expenses as well advance energy efficiency. Bush is offering tax incentives to help family's purchase health insurance, save for their children's education, and meet childcare expenses as well as promote land conservation, charitable giving, and housing redevelopment.

These are worthy social and economic goals. But the policy solution the two candidates embrace will make our Byzantine tax code even more complicated. The tax playing field will be less level than before. The economic burden of complying with the tax code will increase, as will the incentives for tax gamesmanship.

Why not give taxpayers a break? It would be far better to embrace a progressive, simpler income tax system by broadening the tax base and eliminating many tax breaks. Even a modest turn in the direction of simplification would be far superior to what currently exist, or what the candidates are proposing.

 


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