The Cost of Unstable Tax Laws
Special Report No. 41
Executive Summary The Internal Revenue Act of 1954 was landmark legislation that, for the first time, placed the income tax at the core of the federal tax system. In the 40 years since the passage of that Act, 31 significant federal tax enactments have taken place. On average, that amounts to a substantial amendment to the federal tax code every 1.3 years. Such instability in the tax code creates economic uncertainty among taxpayers, which, in turn, generates economic costs.