Beware "Revenue Neutral" Tax Reform

[redcliffsw]

Thus, if a tax cut as part of tax reform package requires a tax increase on someone else, this in no way should be interpreted as necessarily helping the more middle-income taxpayers. Yes, it helps those who work federal jobs, receive government welfare, and make money off government contracts. But, a great many people not lucky enough to receive these benefits will be hurt by taxes on the rich in the form of lost job opportunities, higher-priced goods, and less access to bank loans.

Our second problem stems from the fact that the spending phase of the tax-and-spend process is just as damaging as the collection phase.

As we've noted before, there's almost no chance at all that the leaders of the GOP will seriously approach the issue of government spending.

Read on:
https://mises.org/blog/beware-revenue-neutral-tax-reform