From the TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Cuts and Jobs Act in 2017 to the InflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. Reduction Act signed into law just this summer, lawmakers across the political spectrum are often tempted to implement temporary tax reforms.
But is this how tax policy should be done?
Garrett Watson joins Jesse to discuss the pros and cons of writing tax laws that have an end date and why we find ourselves having a debate at the end of each year about so many temporary provisions.
Links
https://taxfoundation.org/making-the-tax-cuts-and-jobs-act-individual-income-tax-provisions-permanent/
https://taxfoundation.org/economic-growth-opportunity-tax-reforms/
https://taxfoundation.org/temporary-tax-policies-in-budget-reconciliation/
https://taxfoundation.org/cbo-report-us-gdp-budget-deficit/
https://taxfoundation.org/tax-extenders-expiring-tax-provisions-2021/
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