I have come to the conclusion that tweaking the tax code here and there are a waste of time. Raising a rate or offering a tax credit is too small to have an effect, and has adverse effects such as creating uncertainty. Consumers can wait like they wait for sales on retail goods. Nick Gillespie has more:
I am no fan of the “rich” (even as I aspire to join their ranks). But this sort of tactic – raising token taxes on the wealthy while coming up with a hodgepodge of sure to be temporary and confusing breaks and funds for “businesses” and “infrastructure” – is exactly the problem. Those sorts of programs create uncertainty that ultimately freezes economic activity. Far better to keep tax rates – and business handouts – simple and stable than to constantly think you can squeeze on this part of the balloon now and this other part later. Obama displays the mentality of someone who thinks he can manage every aspect of every activity, whether it’s car manufacturing, housing prices, or credit card fees. The smarter move is to simply create a basic structure and then let people have at it, knowing that the rules are fixed for the forseeable future.
Tinker-in-Chief Obama and the Democrats have boatloads of gimmicks, and want more. Gov. Mitch Daniels (R-IN) has another such suggestion.
It is time for wholesale tax reform. Combine the payroll and income taxes into one low tax on income.