While they may tell you there are deep differences in their positions and policies, too many politicians on the left and the right eagerly embrace the coercive force of big government when it is in their best political survival interests to curry favor with certain segments of their constituency.
On the left, which seldom sees a tax it doesn’t like, we see that most frequently play out in their dogged determination to preserve, protect, and expand the entitlement realm. On the right, crony capitalism and corporate welfare are Achilles heels, but by no means does that denote the left isn’t equally enthusiastic about the giveaways when it comes to their favorite businesses and industries (think renewable energy and hybrid vehicles).
The Tax Foundation has issued a report that targets corporate welfare carve-outs as a $38 billion drain from the tax revenue pipeline. It also supports reducing the federal corporate income tax, and eliminating the estate tax, alternative minimum, and Obamacare taxes. Called “Twelve Steps Toward a Simpler, Pro-Growth Tax Code,” the report states:
- “After years of slow economic growth and a burgeoning tax code, many in Congress and elsewhere have recognized that now is the time for tax reform. Unfortunately, the political process is often at odds with reform, because it tends to protect the status quo, including the tendency to use the tax code to implement industrial and social policy rather than using it simply as a way to raise revenue. Meanwhile, the U.S. tax system has become less and less competitive as the rest of the world works to reform their tax codes. If the U.S. is to regain its standing and return to robust economic growth, it will need to first acknowledge the areas of the tax code that are the least competitive and most problematic in terms of complexity.”