Lecture 5: Toward an Optimal Tax System, Part 2: What Might Full-Blown Tax Reform Look Like, and What Can We Hope to Accomplish by Improving the Tax System?

What benefits might we expect from a complete tax overhaul? The Tax Cuts and Jobs Act amended the income tax, but was not a full-blown reform of the tax system.

Several features of the new tax system (as with the old system) remain less than optimal. There is a tax base that is still overly complex and inconsistent with basic tax principles for efficiency and growth.

Several alternative tax regimes will be presented, including a rationalized income tax and systems based on consumed-income or cash flow.

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