Tax Outrage Sydrome

Tax expert Roberton Williams, interviewed by Derek Thompson at the Atlantic has some notes on the political landscape for reform (as currently proposed via Wyden Gregg, which itself only has life so long as the President disavows any and all knowledge of it):

From a political perspective, you say, “We’ve got to do it because you can’t trust big government.” That’s it. That’s all you can say. That’s the only argument I can see [against radically simplifying the filing process for ~80% of Americans by having the IRS essentially pre-fill your form].

Uh, no. The GOP will allow meaningful reforms over their dead bodies. You can pry said bill from their cold, dead hands. Why? Because they are utterly dependent on the government being perceived as a faceless automaton meant to screw you out of your money with no perceptible civic gain in return. Period.

Making healthcare delivery work, making tax codes simpler, efficient government-run response to disaster, making the trains run on time, or whatever other example of government actually working you want to use: none of them comply with the current GOP vision for government. They are fundamentally opposed to all of it. And will fight any attempt to fix it. To. The. Death.

Witness the various tax pickles that Obama’s nominees found themselves in. This wasn’t because they’re all crooks. It’s because our tax codes are vastly overcomplicated. Did the Democrat fight to make that point? Of course not. The nominees largely just withdrew. Instead of a teachable moment, the administration got a fundamental reduction in the available pool of nominees: those with very, very simple tax histories who also decide each and every interpretive question that may arise in favor of the IRS. I think you’ll find vanishingly few CPAs or tax-preparers out there who decide that way. In fact, this problem is sufficiently prevalent that it comes up in the interview (emphasis original):

a study I think in Alabama where they went to a number of preparers with a fake tax case that legally couldn’t qualify for the earned income tax credit. But this particular tax preparer’s thing was to tell people, “We’ll get you the EITC.” And guess what? In only one case did the tax preparers say, “You don’t qualify for this credit.” You pay people a couple hundred bucks for a tax return, you want a real return. You want a credit. If you don’t get it, there goes the business model.

Precisely. Combine this tendency with a complex, multi-national employment record and you’re simply not likely to survive the confirmation process. And, writ large, the GOP likes it this way. They want government to look as ineffectual, impotent, and its processes as internecine as possible. That is the foundational principle of Grover Norquist’s “Starve the Beast” and really all of Reaganism as practiced today. It’s why Medicare Part D (and many other Bush era spending programs) was passed without funding it: the GOP wants financial meltdown such that the government is forced to eliminate said spending programs.

The GOP as currently constituted is and always will be against good policy until such time as they are forced to change tactics. Period. The existence of good policy (and its outcomes) fundamentally weaken their entire volitional paradigm. Period. Democrats need to message accordingly and queue legislation initiatives (like this tax reforms package) that highlight that. Period.

They never will.

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