Sunday, January 21, 2007

Arnold Kling Discusses Tax Breaks

Arnold Kling discusses his case against tax breaks. It’s this kind of thought that shows how an economist(s) usually thinks beyond any partisan line. Robert Samuelsson did so earlier in the week.

Now, Kling:

We really should get rid of tax deductions. Any social policy that you want to do can be done with subsidies. Even the charitable deduction could be re-cast as a matching grant from the government.

It’s important to remember that economists don’t think equality is a bad thing. What’s most concerning for an economist is the priority for everyone to participate in a market and that most importantly, the government doesn’t favor anyone. In fact, it’s pretty obvious that’s why Republicans usually have (or had) an economist's vote. But, as we’ve seen in recent years, Republicans can be just as bad at government spending (and prone to spend) as Democrats.
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