Missouri’s legislature has approved nearly $2 billion in tax incentives for Boeing after a House vote today, and the plan awaits Governor Nixon’s (D) signature. We’ve written on this issue extensively, following it from...
- The Tax Policy Blog
- A Lot Has Changed in the 27 Years Since the Last Major Tax Reform
A Lot Has Changed in the 27 Years Since the Last Major Tax Reform
The last time we reformed the tax code, the world (and our economy) was entirely different. It was 27 years ago today that President Reagan signed the 1986 Tax Reform Act into law.
Since 1986, the U.S. tax code has gone from less than 30,000 pages to over 70,000 pages.
The corporate tax rate has gone from just about average on the international scale, to the highest in the industrialized world.
More business income is now earned by pass-through businesses (sole proprietorships, partnerships, and S Corps).
The amount of credits, loopholes, and deductions has increase by 44 percent, from $844 billion (2013 dollars), to over $1.2 trillion (2013 dollars), with much of that growth coming from the expansion of refundable tax credits.
All these changes in the composition of U.S. taxpayers, businesses, and the economy in which they operate help illustrate the need for tax reform that simplifies the tax code in a way that limits double taxation and leads to greater economic growth.
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