This final lesson discusses fundamental tax reform: What are the motivations for moving to a low-rate, broad-based tax system? What are the political and economic barriers to such reform? What would be the effects of a consumption tax? What are the effects of a flat income tax? | Chapter 8 Fundamental Tax Reform Public Finance and public Policy Introduction The tax code today is nothing more than a cesspool of legalized corruption and special interest legislation. We should replace this monstrosity with a simple flat tax for all Americans. Steve Forbes during his 1996 presidential campaign. His platform reflects some of the widespread dissatisfaction with the current tax system. Introduction At certain times this dissatisfaction has led to action. The 1986 Tax Reform Act reduced 15 tax brackets ranging from 11 to 50 to just three ranging from 15 to 33 . It lowered rates and taxed a broader base of income. Subsequent legislation has added complexity to the tax code and greater opportunity for tax avoidance and .
