The Tax Debate

Nice Wall Street Journal chart on what’s at stake in the tax debate:

Many people very genuinely think that making the income tax as un-progressive as possible is crucial for future economic growth. That, combined with the fact that politicians spend a lot of time socializing with rich people and thus are achingly attentive to their interests, is driving this dynamic. Personally, I find the evidence for the policy merits of low income taxes on the right to be wanting. But I do think it would ultimately be worth hedging our bets by adopting Robert Frank’s idea of a strongly progressive consumption tax rather than the current system.