How to revolutionize the tax code with only 'find and replace'

The case for changing every tax deduction into a tax credit

As simple as that.
(Image credit: iStock)

The tax plan released by the Trump White House last week was blasted for being too simple: a one-page summary of campaign pledges and bullet points. But I think they could have gone simpler. Because if you really wanted to revolutionize the tax code, all you'd need is Microsoft Word's "find and replace" tool.

Let's start with the White House's pledge to "eliminate tax breaks that mainly benefit the wealthiest taxpayers." As Treasury Secretary Steven Mnuchin pointed out Monday, if you cut those loopholes while lowering tax rates, you could provide tax relief to the middle class with "no absolute tax cut for the upper class." But this is harder said than done because tax breaks are usually very popular. For instance, one of the biggest tax breaks is the mortgage interest deduction: a huge giveaway to the wealthy and one of the government's biggest revenue losers. But Mnuchin has already admitted the White House's plan won't touch it. So by the time tax reform is passed — assuming it's ever passed — you can be sure plenty of other tax loopholes will be mysteriously spared the axe.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.