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Saturday, August 18, 2007

Wanting Your Cake and Eating It Too

On August 9, 2007, President Bush noted that he'd be ok with reducing corporate income taxes and simplifying the tax law. On that same day, he signed H.R. 2272 - America COMPETES Act and called for Congress to finish the work and make the R&D tax credit permanent.

He is not alone in this tendency to call for simplification and lower rates, while also calling for new tax breaks. In his remarks about corporate tax rates he observed that "it's much easier to get something in the code than get it out of the code." A very true statement!

So, how do we simplify when we also want to use the tax law to solve all kinds of problems from health insurance to encouraging innovation?


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