Policy Documents

How to Judge a Tax Plan

William McBride –
December 15, 2011

William McBride of the nonpartisan Tax Foundation discusses ten metrics to use in judging tax legislation, plans, and codes so that they are fairest to the people being taxed and benefitting from tax revenue and so they generate the most amount of tax money for the least amount of restraint on the economy. The questions cover four areas: How fair and neutral the tax system is, how complex and costly it is, how the plan affects competitiveness and economic growth, and how it affects the stability of tax revenues.