All this talk about cutting “tax expenditures” got me a thinking. If the President has decided that now itemized deductions must go to help him cut the deficit, maybe it’s time we just chuck the entire tax code. The man behind the Laffer curve thinks so. Can you say 12%?
Art Laffer, a member of Reagan’s economic team and the man who designed the Laffer curve which simply states that as tax rates go down, revenues increase, told Neil Cavuto yesterday that the time has come to reform the tax code. Yes, eliminate deductions (but not the mortgage or charitable deduction, Mr President) and flatten the tax. No forms necessary.
Given that this proposal saves the cherished mortgage and charitable deductions, my guess is it might have a chance, with a new President.