Tax Reform – WSJ Stephen Moore and a Critique – Rep. Dave Camp, Republican House Ways and Means Chairman
A WSJ Letter to the Editor succinctly challenges WSJ Free Markets For Free People. Stephen Moore has a different view and argues for the residential mortgage deduction status quo.
“Stephen Moore continues to forget that every candidate espousing the flat tax mantra of Steve Forbes has been soundly defeated. (“The Weekend Interview with Dave Camp: Is Tax Reform Politically Possible?,” Aug. 11). A progressive tax code is not at the root of our fiscal, or economic problems. I suggest that the U.S. economy has done pretty well since progressivity was built into the code.
As a champion for the elimination of the home mortgage-interest deduction, Mr. Moore continues to ignore the impact of this change on real estate valuation. Furthermore he chooses to ignore the massive destruction of wealth that would ensue from the decline in real estate valuations.”
“The 1986 tax reform eliminated most special-interest deductions and loopholes, lowering the top income-tax rate to 28% from 50%. Harvard economist Dale Jorgenson says the gains to economic growth from the lower rates and the simplified code increased GDP by more than $1 trillion, and that a similar reform now could increase national wealth over the long term by $7 trillion in net present value.”