Revisiting Tax Reform and Government Efficiency
In 2010, while in law school, I was surprised to find myself enjoying the Federal Income Taxation class. At that time, the Bipartisan Tax Fairness and Simplification Act of 2010 was a big topic in tax law. Despite general consensus on the benefits of a simplified tax code, the multibillion-dollar tax preparation industry was not on board. Consequently, the Act never passed, falling victim to Congressional gridlock.
Jump to 2024, and Elon Musk is poised to take over the fictional agency DOGE. Musk has expressed on his website X that streamlining the tax code could boost productivity and curb odd tax-avoidance strategies. While the specifics of Musk’s proposal remain unclear, it seems to involve reducing deductions and simplifying the current seven tax brackets to two or three. This idea echoes the 2010 Act, which suggested three brackets and a higher standard deduction, while cutting specific deductions for special interest groups.
If Musk wants to claim the idea of simplifying the tax code as his own, and if Donald Trump can push these seemingly good ideas through a Congress he controls, all the better. Let’s focus on the potential benefits rather than nitpicking over credit.
Trump has also recently revisited an idea from 2019: ending daylight saving time. He promised that the Republican Party would work to eliminate the biannual clock changes. Again, while not a new concept, it’s a beneficial one. With the Republican Party set to control Congress and the White House in 2025, they should face no obstacles in achieving this, to everyone’s benefit.
Another development involves Musk criticizing wasteful spending by the Pentagon and the excessive budgets of private defense contractors. Although Musk’s companies have benefited from Defense Department contracts, his stance has garnered support from progressives like Senator Bernie Sanders. Sanders echoed Musk’s concerns, pointing out that the Pentagon has lost track of billions and that the defense budget is riddled with waste and fraud.
The idea of reducing the influence of the commercial defense industry on the military is not new; it dates back to Dwight Eisenhower’s farewell address. However, the challenge remains: someone has already tried and failed to implement these ideas. Musk’s experience as a corporate executive is vastly different from navigating Congress. The true test will be how much influence DOGE can exert when lobbyists for the tax prep and defense industries make their case.
Can these initiatives succeed? There are skeptics, but Trump has a significant advantage. While his attempts at national unity have been laughable, he has undeniably unified the Republican Party to follow his lead. With nearly every Republican aligned with Trump and Musk threatening to support primary challenges against dissenters, these proposals have a better chance than they have in years.
In the meantime, there’s little to gain from doubting these efforts. While the new Trump administration will likely present many questionable ideas, it’s worth supporting the promising ones. This holiday season might not bring the gifts we desire, but perhaps some decent ideas will take root in the new year.
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