As another Tax Day April 17, 2012 rolls by I am always amazed at how complex the United States Tax Code has become. And yes, the Presidential candidates still talk about tax reform in 2012, but can you really take tax reform in 2012 seriously? Some of you may remember the historic Reagan 1986 tax reform era. I actually believed in Tax Reform back then. House Ways and Means Dan Rostenkowski, and Senate Finance Bob Packwood told me that the 1986 Act would be the last major tax reform act ever needed. They were wrong. Since 1986 seven major tax acts have been enacted under President Clinton, Bush and Obama and the tax code has become bigger and more complex than ever.
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Tax reform in 2012 seems to be the latest color in the fashion world of politics. It is almost as if the illusion of tax reform is enough to blind us to the grim reality of trillion-dollar annual deficits, $16 Trillion of National Debt and the Trillions of dollars of government entitlements that cause us to live beyond our means as a nation. Whether we end up with a flat tax, simple tax, low rate or high rate, the Tax Reform Magic Act of 2012 is just an illusion unless we first reform an annual trillion-dollar deficit of entitlement programs we can no longer afford.
