John Hood offered his thoughts this week about government “revenue increases” conservatives can support. A Bloomberg Businessweek interview with Oklahoma Sen. Tom Coburn covers similar territory.
You’re opposed to some corporate tax deductions and would like to get rid of them to boost government revenue, correct?
Well, yes. But my motivation isn’t just revenue. With a more predictable tax system, you’ll also get bigger investments and greater growth. When we have 20 percent of the people in 2008 paying 84 percent of the taxes in this country, we have a problem with our tax code. And 49 percent of the households in this country pay no tax. So tax revenues that are enhanced through changing the tax code and flattening it and making it more fair are fine with me. I don’t have any problem with that. I think the exact opposite in terms of raising taxes. It’s what you don’t want to do in a very soft economy.
Grover Norquist and others have problems with some of that, don’t they?
I think some people do. I would tell you on tax credits specifically, first of all, our policies stink because they misdirect capital in this country, especially in terms of ethanol. No question, a fringe group out there believes that if you cut the subsidies for ethanol … that, somehow, is a tax increase.
