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The Benefit and The Burden: Tax Reform-Why We Need It and What It Will Take
A spirited and insightful examination of the need for American tax reform—arguably the most overdue political debate facing the nation—from one of the most legendary political thinkers, advisers, and writers of our time.
A thoughtful and surprising argument for American tax reform, arguably the most overdue political debate facing the nation, from one of the most respected political and economic thinkers, advisers, and writers of our time.
The United States Tax Code has undergone no serious reform since 1986. Since then, loopholes, exemptions, credits, and deductions have distorted its clarity, increased its inequity, and frustrated our ability to govern ourselves.
At its core, any tax system is in place to raise the revenue needed to pay the government’s bills. But where that revenue should come from raises crucial Should our tax code be progressive, with the wealthier paying more than the poor, and if so, to what extent? Should we tax income or consumption or both? Of the various ideas proposed by economists and politicians—from tax increases to tax cuts, from a VAT to a Fair Tax—what will work and won’t? By tracing the history of our own tax system and by assessing the way other countries have solved similar problems, Bartlett explores the surprising answers to all of these questions, giving a sense of the tax code’s many benefits—and its inevitable burdens.
Tax reform will be a major issue debated in the years ahead. Growing budget deficits and the expiration of various tax cuts loom. Reform, once a philosophical dilemma, is turning into a practical crisis. By framing the various tax philosophies that dominate the debate, Bartlett explores the distributional, technical, and political advantages and costs of the various proposals and ideas that will come to dominate America’s political conversation in the years to come.
A thoughtful and surprising argument for American tax reform, arguably the most overdue political debate facing the nation, from one of the most respected political and economic thinkers, advisers, and writers of our time.
The United States Tax Code has undergone no serious reform since 1986. Since then, loopholes, exemptions, credits, and deductions have distorted its clarity, increased its inequity, and frustrated our ability to govern ourselves.
At its core, any tax system is in place to raise the revenue needed to pay the government’s bills. But where that revenue should come from raises crucial Should our tax code be progressive, with the wealthier paying more than the poor, and if so, to what extent? Should we tax income or consumption or both? Of the various ideas proposed by economists and politicians—from tax increases to tax cuts, from a VAT to a Fair Tax—what will work and won’t? By tracing the history of our own tax system and by assessing the way other countries have solved similar problems, Bartlett explores the surprising answers to all of these questions, giving a sense of the tax code’s many benefits—and its inevitable burdens.
Tax reform will be a major issue debated in the years ahead. Growing budget deficits and the expiration of various tax cuts loom. Reform, once a philosophical dilemma, is turning into a practical crisis. By framing the various tax philosophies that dominate the debate, Bartlett explores the distributional, technical, and political advantages and costs of the various proposals and ideas that will come to dominate America’s political conversation in the years to come.
288 pages, Hardcover
First published January 24, 2012
41 people are currently reading
791 people want to read
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Bruce Bartlett
25 books15 followersLibrarian Note: There are multiple authors on Goodreads with this name.
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Displaying 1 - 30 of 46 reviews
February 14, 2012
A concise introduction to the current US tax system and the various proposals for tax reform. (Note that this is a public policy book, not a "how to" manual for taxes.) Explanations are rather spare and unelaborated; I had to re-read a few passages to get the gist of what he was saying. The author won't win any prizes for his prose, which is straightforward but dry, yet he writes with authority and is even-handed. He worked for Republican congressmen in the Reagan–Bush I era, but he has no affinity for the current Republican orthodoxy, especially its Tea Party strains. On the whole, I came away feeling much better informed about tax policy and, I admit, frustrated by the political obstacles that stand in the way of meaningful (and needed) reform.
April 2, 2012
The Benefit and The Burden: Tax Reform Why We Need It and What it Will Take by Bruce Bartlett
“The Benefit and The Burden” is a very solid, no-nonsense book that makes the compelling case for tax reform and what it will take to do so. In an even-handed, non-partisan manner Bruce Bartlett skillfully makes the US Tax System accessible to the masses. Bartlett's background in government economics and having worked on the staffs of Congressmen Ron Paul and Jack Kemp and as deputy assistant secretary for economic policy at the Treasury Department during the George H.W. Bush administration, serves him well to write such a topical and important book. A book about tax reform can be dry and tedious to read at times but Bartlett's lucid and concise prose makes this book a worthwhile read. This educational 288-page book is composed of twenty-four chapters and broken out into the following three parts: Part I. The Basics, Part II. Some Problems, and Part III. The Future.
Positives:
1. Well-written, and exhaustively-researched book that is accessible to the masses.
2. No-nonsense, lucid and concise prose. The author writes with conviction and expertise.
3. Does a very good job of keeping the chapters short and intelligible.
4. Educational and enlightening book that provides a basic foundation in understanding the US Tax System.
5. Despite Bruce Bartlett's work in Republican administrations, he is even-handed and treats this topic with utmost respect and care. He does not shy away from criticizing any party.
6. In general, the author provides persuasive arguments for his thesis.
7. Good use of charts to illustrate points.
8. The author tell you his biases right up front.
9. A brief history of taxation.
10. Explains the tax system process.
11. Generally does a good job of defining terms and provides simplified examples.
12. Does a very good job of differentiating between conservatives and liberals regarding tax reform.
13. Reality versus perceptions.
14. Some eye-opening facts, "A 2011calculation by the CBO concluded that the Bush tax cuts reduced federal revenues by $2.8 trillion between 2002 and 2011".
15. The factors that contribute to economic growth. The purpose of investments.
16. The basic ways that that income can be taxed.
17. Distinctions between U.S. and foreign tax systems.
18. Tax ideas from other countries. Interesting.
19. The impact of tax credits.
20. Understanding social welfare and how we compare to other countries.
21. The goals of tax reform.
22. Heath care policies.
23. Real estate and tax policies.
24. The impact of state and local taxes, surprisingly educational.
25. Charitable contributions.
26. The special problems of capital gains.
27. The even bigger problem of corporations as it relates to tax policy.
28. The critical goal of tax reform, how to improve the tax collection system. Interesting cases.
29. A look at flat tax and the implications.
30. A brief summary of tax reform proposals.
31. The problem of debt.
32. Value-added tax (VAT), a look at this interesting consumption tax. Arguments for and against it.
33. The future of tax reform.
34. A good summary of what the author would like to see happen and what he feels is the best scenario for tax reform.
35. Tea Party criticism.
36. The author provides extensive reading material and I mean extensive.
Negatives:
1. Despite the best intentions tax reform can be dry and tedious.
2. Let's face it economics is a complex topic and some concepts will go over the heads of many readers.
3. I would have liked an analysis of entitlement programs.
4. A breakout of the budget by categories and an analysis would have been welcomed.
5. A glossary of terms would have added value.
6. A little humor never hurts.
7. In order to keep the book to a manageable level, some topics were sacrificed.
8. No direct links in Kindle.
In summary, this was an educational and informative book. If you are interested in learning the basics of the US Tax System and tax reform this is a good book to start. Bartlett provides a plethora of resources for those who want to sink their teeth further into this topic and the information that he does provide is solid and well grounded. The book can be dry at times and some topics may be beyond the reach of the layperson but in general the author does a commendable job of making the book accessible and keeping the book concise. I learned a lot from this book and the author successfully addresses the main issues of his subject. If you are interested in this topic by all means get this book, I recommend it.
Further suggestions: "The Republican Brain" by Chris Mooney, “Winner-Take All Politics” by Jacob S. Hacker, “Screwed the Undeclared War Against the Middle Class” by Thom Hartmann, “The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America…” by Michael W. Hudson, “Perfectly Legal…” by David Cay Johnston, and “The Looting of America” by Les Leopold.
“The Benefit and The Burden” is a very solid, no-nonsense book that makes the compelling case for tax reform and what it will take to do so. In an even-handed, non-partisan manner Bruce Bartlett skillfully makes the US Tax System accessible to the masses. Bartlett's background in government economics and having worked on the staffs of Congressmen Ron Paul and Jack Kemp and as deputy assistant secretary for economic policy at the Treasury Department during the George H.W. Bush administration, serves him well to write such a topical and important book. A book about tax reform can be dry and tedious to read at times but Bartlett's lucid and concise prose makes this book a worthwhile read. This educational 288-page book is composed of twenty-four chapters and broken out into the following three parts: Part I. The Basics, Part II. Some Problems, and Part III. The Future.
Positives:
1. Well-written, and exhaustively-researched book that is accessible to the masses.
2. No-nonsense, lucid and concise prose. The author writes with conviction and expertise.
3. Does a very good job of keeping the chapters short and intelligible.
4. Educational and enlightening book that provides a basic foundation in understanding the US Tax System.
5. Despite Bruce Bartlett's work in Republican administrations, he is even-handed and treats this topic with utmost respect and care. He does not shy away from criticizing any party.
6. In general, the author provides persuasive arguments for his thesis.
7. Good use of charts to illustrate points.
8. The author tell you his biases right up front.
9. A brief history of taxation.
10. Explains the tax system process.
11. Generally does a good job of defining terms and provides simplified examples.
12. Does a very good job of differentiating between conservatives and liberals regarding tax reform.
13. Reality versus perceptions.
14. Some eye-opening facts, "A 2011calculation by the CBO concluded that the Bush tax cuts reduced federal revenues by $2.8 trillion between 2002 and 2011".
15. The factors that contribute to economic growth. The purpose of investments.
16. The basic ways that that income can be taxed.
17. Distinctions between U.S. and foreign tax systems.
18. Tax ideas from other countries. Interesting.
19. The impact of tax credits.
20. Understanding social welfare and how we compare to other countries.
21. The goals of tax reform.
22. Heath care policies.
23. Real estate and tax policies.
24. The impact of state and local taxes, surprisingly educational.
25. Charitable contributions.
26. The special problems of capital gains.
27. The even bigger problem of corporations as it relates to tax policy.
28. The critical goal of tax reform, how to improve the tax collection system. Interesting cases.
29. A look at flat tax and the implications.
30. A brief summary of tax reform proposals.
31. The problem of debt.
32. Value-added tax (VAT), a look at this interesting consumption tax. Arguments for and against it.
33. The future of tax reform.
34. A good summary of what the author would like to see happen and what he feels is the best scenario for tax reform.
35. Tea Party criticism.
36. The author provides extensive reading material and I mean extensive.
Negatives:
1. Despite the best intentions tax reform can be dry and tedious.
2. Let's face it economics is a complex topic and some concepts will go over the heads of many readers.
3. I would have liked an analysis of entitlement programs.
4. A breakout of the budget by categories and an analysis would have been welcomed.
5. A glossary of terms would have added value.
6. A little humor never hurts.
7. In order to keep the book to a manageable level, some topics were sacrificed.
8. No direct links in Kindle.
In summary, this was an educational and informative book. If you are interested in learning the basics of the US Tax System and tax reform this is a good book to start. Bartlett provides a plethora of resources for those who want to sink their teeth further into this topic and the information that he does provide is solid and well grounded. The book can be dry at times and some topics may be beyond the reach of the layperson but in general the author does a commendable job of making the book accessible and keeping the book concise. I learned a lot from this book and the author successfully addresses the main issues of his subject. If you are interested in this topic by all means get this book, I recommend it.
Further suggestions: "The Republican Brain" by Chris Mooney, “Winner-Take All Politics” by Jacob S. Hacker, “Screwed the Undeclared War Against the Middle Class” by Thom Hartmann, “The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America…” by Michael W. Hudson, “Perfectly Legal…” by David Cay Johnston, and “The Looting of America” by Les Leopold.
June 23, 2017
Overall when you see a book which has Tax Reform on the cover most people would place the book back in the dusty shelf where it belongs, however after reading this book I have to admit it was worth taking it off that shelf and peering into those pages. I must admit as an accounting major it seemed interesting to me, but overall as a person seeking out the future of this government and country this book opened up my mind to the reality of taxes and why they are necessary to us as a whole nation. I thought the way the Author, Bruce Bartlett, started his book off by introducing a mysterious concept like the tax code, and comparing it with something more world-wide known like the average garden was a great way to gain interests into these facts. His words stated, “The tax code is like a garden. Without regular attention, it grows weeds that will soon overwhelm the plants and flowers.” It’s a great way to pop questions into the average mind about why it would require reformation in tax laws on a yearly basis and continual “weeding” throughout time. It’s split into three separate parts, the basics, some problems, and the future. Each part has great insights of Tax code and why it’s necessary, but overall I love that it brings about different thoughts and issues of the need for different taxes and why different rates are necessary for the general public to be placed in. All in all this is a book that is great for any mind wanting to see the future of our tax code and taxation process along with where its journey will go to. Accounting and business majors would enjoy this read, but the general public would gain such great strengths from reading this book and have a better foundation for the need for Tax Reformation.
March 27, 2021
Incredibly dull and biased, more personal attacks than substance. Arguments are loose and assume the average American understands all tax implications (argues the mortgage interest deduction is harmful because it could mean less municipal bonds are purchased. Like...what?).
Legitimate talking points like tax loopholes used by higher tax brackets are spoiled by using the argument against any home owner claiming the mortgage interest deduction; all arguments go back to if a policy would or would not generate more federal revenue, never *if* the policy should be enacted or if the government is overreaching in tax practices. The flowchart here is if it raises more revenue, let’s do it.
The first third of the book is dull in going over bureaucracy, the second is the bulk of what I’ve already discussed, the final part is his gushing of a VAT system that is not a part of current political debate and will likely never come to fruition.
I pushed through this book just so I could count it for my yearly goal.
Legitimate talking points like tax loopholes used by higher tax brackets are spoiled by using the argument against any home owner claiming the mortgage interest deduction; all arguments go back to if a policy would or would not generate more federal revenue, never *if* the policy should be enacted or if the government is overreaching in tax practices. The flowchart here is if it raises more revenue, let’s do it.
The first third of the book is dull in going over bureaucracy, the second is the bulk of what I’ve already discussed, the final part is his gushing of a VAT system that is not a part of current political debate and will likely never come to fruition.
I pushed through this book just so I could count it for my yearly goal.
February 3, 2019
Bartlett has the advantage in critiquing current tax policy of having been among those who truly believe in free-market capitalism, and who now see the false promises and fraud such policies deliver. Written in 2013, we've moved on from the middle of the Obama years, mostly for worse, but Bartlett does not pull his punches when it comes to the weaknesses of Obama's economic policies, drafted as they were by Wall Street financiers. Many of Bartlett's arguments and proposals echo those of progressive economists I've read. Bartlett's focus on tax policy is particularly useful.
March 1, 2023
This was mandatory reading in grad school... and I LOVED it. Anyone who pays taxes should read this.
March 8, 2012
Some things I liked about Bruce Bartlett's book about tax reform are as follows:
1. The writing is clipped, precise and unadorned. For a book about, of all things, taxes, this is a welcome decision and it works to have the book broken down into concise chapters that stick to a topic, cover the material and then move on. Bartlett doesn't waste time trying to over-explain everything, relying on the reading comprehension of the reader to draw the necessary conclusions.
2. Bartlett takes a refreshingly moderate stance on the political aspects inherent in conversations about taxation. Bartlett worked for the Regan and Bush I administrations, but his views aren't Glen Beck riot conservatism, he just happens to be somewhat Republican-leaning. The faults he finds with the resistance to tax reform are widely spread and he's not afraid to lay the blame wherever it is found. One gets the sense that if all contentious topics in politics could be discussed in this manner, there might be a chance for legitimate, effective, reasoned change in this country.
3. The book is extensively researched, exhaustively referenced, and full of supporting evidence for the opinions and presented facts.
Now, some things I didn't care for about The Benefit And The Burden:
1. The no-nonsense prose on display here is almost so bare as to be challenging to muddle through. The salvation is the brevity of each point, but my own ignorance of economics and tax principles really made this a trying book at times. This isn't really a fault with Bartlett in and of itself, but for anyone hoping to have a gentle introduction into modern tax theory and economic principles, start somewhere else because Bartlett doesn't have time to carry you along.
The way that this manifests as a negative in the book is that it's sometimes hard to decipher who the target audience for the book is. I presume economists are perfectly aware of all this information and a piece directed at them could have been shorthanded all the way into an essay. Know-nothing laypeople like myself may find the book to be a bit insider-y, presuming basic familiarity with a lot of the core concepts which can make a lot of the book seem foreign and unfathomable. The best I can figure is that this book is for highly educated people with a decent background in economics, to whom this may be simply an extended persuasive op-ed, but considering the inflammatory state of national politics at the moment, it's hard to think that the narrow band of moderate academics make up a sufficient demographic for a viable book sales projection.
2. The brief chapters and extensive "Additional Reading" sections make the book feel a bit like an annotated bibliography rather than a complete work in itself. It's sort of cheap to praise a book for being well-referenced and also to complain that the book relies on these references for support, I know, but I did feel that there was the potential for a middle ground where some additional detail was included (perhaps more quoted source material?) to make the book feel more stand-alone without artificially inflating the presentation.
Overall, I felt that Bartlett was very persuasive. The Benefit And The Burden is essentially an argument for Value Added Taxes (VATs) which are essentially labor taxes that are paid and credited through the production chain until the burden falls on the consumer (like a layered sales tax at the federal level). Bartlett lays out how current taxes work, explains why tax increases are going to be necessary in the near future and then describes why VATs are the best option for managing the necessary tax hikes to avoid deficit fallouts like inflation and weakened US economies. Bartlett is also pretty fair to detractors of VATs as he devotes plenty of time to defining alternate methods and highlighting some of the serious (or not so serious) arguments against VATs.
I wouldn't say I necessarily recommend the book to just anyone, but for people who want a decent overview of the current economic state and the potential issues that could result from it, and then want a well-thought-out proposed solution to those problems, this is a good place to start.
1. The writing is clipped, precise and unadorned. For a book about, of all things, taxes, this is a welcome decision and it works to have the book broken down into concise chapters that stick to a topic, cover the material and then move on. Bartlett doesn't waste time trying to over-explain everything, relying on the reading comprehension of the reader to draw the necessary conclusions.
2. Bartlett takes a refreshingly moderate stance on the political aspects inherent in conversations about taxation. Bartlett worked for the Regan and Bush I administrations, but his views aren't Glen Beck riot conservatism, he just happens to be somewhat Republican-leaning. The faults he finds with the resistance to tax reform are widely spread and he's not afraid to lay the blame wherever it is found. One gets the sense that if all contentious topics in politics could be discussed in this manner, there might be a chance for legitimate, effective, reasoned change in this country.
3. The book is extensively researched, exhaustively referenced, and full of supporting evidence for the opinions and presented facts.
Now, some things I didn't care for about The Benefit And The Burden:
1. The no-nonsense prose on display here is almost so bare as to be challenging to muddle through. The salvation is the brevity of each point, but my own ignorance of economics and tax principles really made this a trying book at times. This isn't really a fault with Bartlett in and of itself, but for anyone hoping to have a gentle introduction into modern tax theory and economic principles, start somewhere else because Bartlett doesn't have time to carry you along.
The way that this manifests as a negative in the book is that it's sometimes hard to decipher who the target audience for the book is. I presume economists are perfectly aware of all this information and a piece directed at them could have been shorthanded all the way into an essay. Know-nothing laypeople like myself may find the book to be a bit insider-y, presuming basic familiarity with a lot of the core concepts which can make a lot of the book seem foreign and unfathomable. The best I can figure is that this book is for highly educated people with a decent background in economics, to whom this may be simply an extended persuasive op-ed, but considering the inflammatory state of national politics at the moment, it's hard to think that the narrow band of moderate academics make up a sufficient demographic for a viable book sales projection.
2. The brief chapters and extensive "Additional Reading" sections make the book feel a bit like an annotated bibliography rather than a complete work in itself. It's sort of cheap to praise a book for being well-referenced and also to complain that the book relies on these references for support, I know, but I did feel that there was the potential for a middle ground where some additional detail was included (perhaps more quoted source material?) to make the book feel more stand-alone without artificially inflating the presentation.
Overall, I felt that Bartlett was very persuasive. The Benefit And The Burden is essentially an argument for Value Added Taxes (VATs) which are essentially labor taxes that are paid and credited through the production chain until the burden falls on the consumer (like a layered sales tax at the federal level). Bartlett lays out how current taxes work, explains why tax increases are going to be necessary in the near future and then describes why VATs are the best option for managing the necessary tax hikes to avoid deficit fallouts like inflation and weakened US economies. Bartlett is also pretty fair to detractors of VATs as he devotes plenty of time to defining alternate methods and highlighting some of the serious (or not so serious) arguments against VATs.
I wouldn't say I necessarily recommend the book to just anyone, but for people who want a decent overview of the current economic state and the potential issues that could result from it, and then want a well-thought-out proposed solution to those problems, this is a good place to start.
July 8, 2020
This is a surprisingly interesting book. While a little dry, it's easy to read and very straightforward, and Bartlett's scorn for both the Democrats and the Republicans of today is pretty entertaining. He especially hates Grover Norquist.
Bartlett does not espouse any particularly controversial views in this book, but he provides enough opinions to make the subject matter take on a little life. I think one of the common issues with subject overviews is that their authors try to write without bias, which is both unrealistic and boring. Bartlett is for taxing consumption instead of income (apparently Alexander Hamilton was, too), but thinks the idea of a flat tax is stupid. He straight-up mocks people who believe in a flat tax, which is highly entertaining.
Hamilton on a consumption tax:
He also provides a good amount of data on historical taxation, taxation compared to other countries, and success of attempted tax reforms. Bush 2's dividend tax cut did not boost payouts to shareholders (dividend payments were up, but not more than in Europe, and not more than in past periods). Note: Bartlett also does not like Bush 2.
One of his pet peeves (other than Grover Norquist) is tax changes that expire, such as a deduction on equipment costs intended to incentivize investment in capital. He says these incentives only reward those already doing the thing because few businesses are nimble enough to change their behavior for an incentive that might evaporate in two years. Unfortunately, this is how much tax "reform" gets passed because it's easier to do than permanent changes.
I was surprised that he finds our tax system to be more progressive than most European systems because they rely more on a VAT, which is not adjusted based on income. (Obviously this ignores the fact that we have an appallingly poor social net.) He is very much in favor of a VAT, however, and spends an interesting chapter on how it works, which I had not fully understood before. One of his reasons is that it is much cheaper to collect than an income tax, and self-audits along the way. Considering how much money we spend to collect the federal income tax, this is very appealing:
I already have a natural preference toward consumption taxes, but the discussion of the difficulties of determining how to tax income, especially capital gains, hammered this home. I had just accepted that taxing capital gains when shares were sold made sense, but it doesn't necessarily. Some countries tax them each year based on market value, eliminating the deferral of gains, which is essentially an interest-free loan from the government. This sounds terrible for many reasons (more paperwork, having to pay even though your money is still locked up), but I do understand the thought behind it.
This pretty well sums up Bartlett's views, and though I don't wholly agree with it, I can admire the goal:
Bartlett does not espouse any particularly controversial views in this book, but he provides enough opinions to make the subject matter take on a little life. I think one of the common issues with subject overviews is that their authors try to write without bias, which is both unrealistic and boring. Bartlett is for taxing consumption instead of income (apparently Alexander Hamilton was, too), but thinks the idea of a flat tax is stupid. He straight-up mocks people who believe in a flat tax, which is highly entertaining.
Hamilton on a consumption tax:
If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes if this class, and is itself a natural limitation of the power of imposing them. (p. 198)
He also provides a good amount of data on historical taxation, taxation compared to other countries, and success of attempted tax reforms. Bush 2's dividend tax cut did not boost payouts to shareholders (dividend payments were up, but not more than in Europe, and not more than in past periods). Note: Bartlett also does not like Bush 2.
One of his pet peeves (other than Grover Norquist) is tax changes that expire, such as a deduction on equipment costs intended to incentivize investment in capital. He says these incentives only reward those already doing the thing because few businesses are nimble enough to change their behavior for an incentive that might evaporate in two years. Unfortunately, this is how much tax "reform" gets passed because it's easier to do than permanent changes.
I was surprised that he finds our tax system to be more progressive than most European systems because they rely more on a VAT, which is not adjusted based on income. (Obviously this ignores the fact that we have an appallingly poor social net.) He is very much in favor of a VAT, however, and spends an interesting chapter on how it works, which I had not fully understood before. One of his reasons is that it is much cheaper to collect than an income tax, and self-audits along the way. Considering how much money we spend to collect the federal income tax, this is very appealing:
It is estimated that the deadweight cost of the federal tax system is equal to about one-third of revenue raised or about 5 percent of the gross domestic product. (p. 197)
I already have a natural preference toward consumption taxes, but the discussion of the difficulties of determining how to tax income, especially capital gains, hammered this home. I had just accepted that taxing capital gains when shares were sold made sense, but it doesn't necessarily. Some countries tax them each year based on market value, eliminating the deferral of gains, which is essentially an interest-free loan from the government. This sounds terrible for many reasons (more paperwork, having to pay even though your money is still locked up), but I do understand the thought behind it.
This pretty well sums up Bartlett's views, and though I don't wholly agree with it, I can admire the goal:
The goal of tax reform, which Republicans used to believe in, should be tax neutrality. People and businesses should make economic decisions based solely on the economics and not because the tax system subsidizes them to do one thing rather than another. (p. 230)
March 31, 2014
With the amount of time I have spent in "establishments" over my years, it seems that one of the most commonly discussed (read argued) topics is Taxes and Taxation. The vast majority of the time my sense was that those speaking on the topic were not completely (or at times at all) informed as to the history of our taxation system and the challenges that we are currently facing. I counted myself as one who was not completely informed. So I turned to Bruce Bartlett - he of the New York Times Economix column on taxation - and as a senior policy analyst in the Reagan White House, a deputy assistant secretary for economic policy at the Treasury Department in the Bush (I) administration as well as an advisor to Congressman Ron Paul and Congressman Jack Kemp - his conservative credentials are solid. Imagine my surprise after a thorough analysis of the history of our tax code, a look at how tax bills are made, understanding tax rates, the relationship between tax rates and revenues, an entire section on the problems of our tax code, including the taxing of Healthcare, tax preferences for Housing, Charitable Contributions, Capital Gains, Corporate TAxes, a look at future answers such as Tax Reform, Value-Added Taxes, the Bush Tax Cuts, etc.... I could go on and on.... he takes on and destroys Grover Norquist. Bottom line - I feel much more educated on our taxation systems and the challenges we face. I believe that Federal Revenues will need to rise as a share of GDP in coming years to pay for the cost of an aging society and to stabilize our finances. I think it is unrealistic to try to accomplish that solely by cutting spending. I think it is more acceptible to raise the revenues by taxing consumption rather than raising tax rates. I think it is irresponsible to view tax expenditures as fundamentally different from spending. It is myoptic in the extreme to view all tax cuts as good and all spending as bad, whether from a philosophical or an economic point of view. If it were up to me, I would institute an Value Added Tax and use the revenue to make obvious fixes in the tax code. I would abolish the Alternative Minimum Tax and reduce the Corporate Tax Rate, and put in place a tax that can be raised gradually over time to pay for rising entitlement spending.
Finally - it is the entitlement of all Americans to have an opinion. I would suggest this book to all who wish to be taken more seriously by having an educated one. It is not a perfect book - and it does not suggest or claim to have all answers. But it is a start. Strongly suggested.
Finally - it is the entitlement of all Americans to have an opinion. I would suggest this book to all who wish to be taken more seriously by having an educated one. It is not a perfect book - and it does not suggest or claim to have all answers. But it is a start. Strongly suggested.
September 23, 2012
Very glad to have read this book on the U.S. Tax system and options for tax reform. Bruce Bartlett, the author was an appointee under the Reagan Administration and also worked under George H. Bush (#1)
After giving an overview of basics about the tax system and how our tax system compares with other countries, including a description of U.S. corporation taxes and capital gains taxes and a whole chapter on the ineffective Bush tax cuts, the author makes a strong pitch for a consumption tax such as a Value Added Tax (V.A.T.) like what is used throughout Europe.
Normally this type of tax is considered very regressive, but he feels the pro's outweigh the cons. And I thought he presented a pretty good case. The author explains that there will never be tax reform in this country until Grover Norquist agrees to release those congressmen he holds hostage to a policy of no tax increase no matter what.
Norquist believes "The only time the deficit comes down is when you refuse to raise taxes and you rein in spending." Bartlett presents a powerful contrary example when in 1993, Clinton and the Democratic congress raised taxes by about .6 percent. According to Norquist, this should have led to higher spending but "in fact, spending fell from 22.1 percent of GDP in 1992 to 18.2 percent in Clinton's last year." Also, the author points out the fact that spending rose after the Bush tax cuts in 2001, 2002, 2003, 2004 and 2005 exemplifies another case that disputes the claims of Norquist.
The reader may understand Tax issues better after reading this book but I don't think any reader will feel optimistic about how our Tax system could be improved anytime soon until the radically divisive politics in Washington can be tamed to produce Tax reform in the interests of the country and not just in the interests of Grover Nyquist and his supporters.
After giving an overview of basics about the tax system and how our tax system compares with other countries, including a description of U.S. corporation taxes and capital gains taxes and a whole chapter on the ineffective Bush tax cuts, the author makes a strong pitch for a consumption tax such as a Value Added Tax (V.A.T.) like what is used throughout Europe.
Normally this type of tax is considered very regressive, but he feels the pro's outweigh the cons. And I thought he presented a pretty good case. The author explains that there will never be tax reform in this country until Grover Norquist agrees to release those congressmen he holds hostage to a policy of no tax increase no matter what.
Norquist believes "The only time the deficit comes down is when you refuse to raise taxes and you rein in spending." Bartlett presents a powerful contrary example when in 1993, Clinton and the Democratic congress raised taxes by about .6 percent. According to Norquist, this should have led to higher spending but "in fact, spending fell from 22.1 percent of GDP in 1992 to 18.2 percent in Clinton's last year." Also, the author points out the fact that spending rose after the Bush tax cuts in 2001, 2002, 2003, 2004 and 2005 exemplifies another case that disputes the claims of Norquist.
The reader may understand Tax issues better after reading this book but I don't think any reader will feel optimistic about how our Tax system could be improved anytime soon until the radically divisive politics in Washington can be tamed to produce Tax reform in the interests of the country and not just in the interests of Grover Nyquist and his supporters.
November 12, 2012
I thoroughly enjoyed Bartlett's The New American Economy: The Failure of Reaganomics and a New Way Forward, which gave a solid introduction to Bartlett's views of Keynesianism, supply-side economics, and tax policy. That book had the virtue of being an apostate's manifesto--one of the architects of Reaganomics in the 1980s repudiated his former position and argued for a mix of tax increases and spending cuts in order to reduce the deficit and the national debt. It is an excellent book, and I highly recommend it.
The Benefit and the Burden is not an excellent book. It is barely a book at all. It consists of 24 short chapters in three sections. The chapters in the first section are basically just encyclopedia entries on basic tax facts. What is income? What are tax rates? How do other countries tax themselves? This may be useful as basic remediation for people just now starting to think about taxes, but do we really need such a thing now that God has caused Wikipedia to be invented? The second and third sections alternate between more encyclopedia entries and short op-ed pieces drawn from Bartlett's excellent economics blog from the Capital Gains and Games website in 2011 and early 2012. Some of this is good material, but it is available for free on the Internet. and there is nowhere near enough material here to make another book.
I still like Bruce Bartlett, and I will continue to enjoy reading his blog, which is now hosted by the New York Times (http://economix.blogs.nytimes.com/aut...). I suspect that I will read the next book he writes. But I hope that it is better than this one. .
The Benefit and the Burden is not an excellent book. It is barely a book at all. It consists of 24 short chapters in three sections. The chapters in the first section are basically just encyclopedia entries on basic tax facts. What is income? What are tax rates? How do other countries tax themselves? This may be useful as basic remediation for people just now starting to think about taxes, but do we really need such a thing now that God has caused Wikipedia to be invented? The second and third sections alternate between more encyclopedia entries and short op-ed pieces drawn from Bartlett's excellent economics blog from the Capital Gains and Games website in 2011 and early 2012. Some of this is good material, but it is available for free on the Internet. and there is nowhere near enough material here to make another book.
I still like Bruce Bartlett, and I will continue to enjoy reading his blog, which is now hosted by the New York Times (http://economix.blogs.nytimes.com/aut...). I suspect that I will read the next book he writes. But I hope that it is better than this one. .
February 11, 2013
I want to say that it was a little simplified at points. However, having taken more than a few tax courses while in law school, I'm probably not the target audience for many of those parts. I also would have appreciated better citing. While there are end notes of a sort at the end of each chapter, they're more "further reading" than they are citations. I appreciate being guided to sources which may help me better understand the nuance of tax policy, I found myself sometimes frustrated by the inability to easily distinguish between the author's own assertions and those taken from other sources (and the inability to go directly to those sources).
All of that said, it is a worthwhile read. Bartlett is upfront with his biases and rationales, and there's never a feeling as if he's trying to "hide the ball" or minimize counterarguments. And, even if a little on the simplistic side, I came out of it feeling better educated and with a better understanding of what questions I should ask moving forward. Assumptions were challenged, and my mind was even changed here and there. Don't expect a textbook, but do expect to learn something.
All of that said, it is a worthwhile read. Bartlett is upfront with his biases and rationales, and there's never a feeling as if he's trying to "hide the ball" or minimize counterarguments. And, even if a little on the simplistic side, I came out of it feeling better educated and with a better understanding of what questions I should ask moving forward. Assumptions were challenged, and my mind was even changed here and there. Don't expect a textbook, but do expect to learn something.
April 5, 2012
An incredible read.. This book will enlighten and enrage you. You will know more about tax policy than most politicians by the time you finish this book.
The author worked on tax policy for both Reagan and Clinton and details 20+ chapters of specific ideas, concepts, and issues around many commonly heard tax/money issues. Each chapter ends with at least one entire page of "additional reading" and references. This is very detailed and an I would like to have every politician read this and pass a test on it before they open their mouths on tax reform.. It should be required reading for all citizens..
Spoiler: Bluntly it lays out what most people don't want to hear: nothing happening today will get us out of this mess and it will take raising taxes and cutting spending, or completely changing our tax structure to something like a modified VAT tax (which most countries use very successfully).
It's a bit tough to read occasionally (sometimes each sentence needs to be read and pondered), but absolutely relevant and well worth it.
The author worked on tax policy for both Reagan and Clinton and details 20+ chapters of specific ideas, concepts, and issues around many commonly heard tax/money issues. Each chapter ends with at least one entire page of "additional reading" and references. This is very detailed and an I would like to have every politician read this and pass a test on it before they open their mouths on tax reform.. It should be required reading for all citizens..
Spoiler: Bluntly it lays out what most people don't want to hear: nothing happening today will get us out of this mess and it will take raising taxes and cutting spending, or completely changing our tax structure to something like a modified VAT tax (which most countries use very successfully).
It's a bit tough to read occasionally (sometimes each sentence needs to be read and pondered), but absolutely relevant and well worth it.
June 3, 2012
I picked this up after Bruce Bartlett's interview on the Daily Show. I didn't know anything about him, but he seemed like a reasonable, knowledgeable guy. I only found out when I told my brother I was reading this that he was an adviser to Presidents Reagan and Bush I, which made me a little nervous, but I found the book to be a fairly even-handed, comprehensible book about tax policy. (There are hints of his politics, but he points out flaws in most people's pet theories, including his own.)
This books was part of my books-on-important-things-I-don't-know-much-about. It was much less dense than ECONned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism, broken into bite-sized pieces, and quite informative- the sort of book I'd like to refer back to during political discussions.
This books was part of my books-on-important-things-I-don't-know-much-about. It was much less dense than ECONned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism, broken into bite-sized pieces, and quite informative- the sort of book I'd like to refer back to during political discussions.
May 27, 2012
I saw the author on Stewart and he was convincing enough in his five minutes to sell me a book. This analysis of the US and in some cases international tax systems is a little bit like a text book for the uninitiated, topics are simply stated but I still found myself having to read certain passages a second time. Readers could easily have differnt takeaways from this book, it certainly reinforced my opinion that the only way out of current perceived debt crisis is to end the Bush tax cuts when they expire at the end of this year. Not likely. This is a quick read, easily digested chapters covering each topic. I can easily see myself referring back to it as a primer when I know I might have to engage in a drink encourage debate about taxes and Republicans.
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June 24, 2013'In his new work, Bruce Bartlett—one of the original supply-side economists—makes a cogent case for restructuring our tax system. His premise is exactly right: “The goal of tax reform, which Republicans used to believe in, should be tax neutrality.” Given how high our debt levels are, any new system has to be revenue-neutral. But the right kind of reform, Bartlett maintains, should have “the lowest possible rates on the broadest possible base.” America would be better off with a system that emphasizes taxing consumption rather than one that heavily taxes capital investment.'
Read the full review, "Capital Punishment," on our website: http://www.theamericanconservative.co...
Read the full review, "Capital Punishment," on our website: http://www.theamericanconservative.co...
October 10, 2013
Filled with great summarizations of data, but dry as a bone. The author's history and prognosis is colored by his preference for a national VAT tax. He'll get his VAT the same day the pet unicorn finally arrives. It reads at though Bartlett's anger at Bush II for failing to act as a fiscal conservative has morphed into bitterness toward the entire Republican Party. There may be 50 very accurate criticisms of individual politician's policy positions in this book, but perhaps 2 of those criticisms are aimed at Democrats. That gets stale. I guess any tax policy brawl insider who reads this will conclude the author is grinding his axe.
September 24, 2012
Good read for what it was. Good background and history. Interesting to note that during the Eisenhower era the top 1% paid over 50% in taxes and people call that the golden era. Now that same top 1% pay way less and we are in such a mess. Tax reform is needed but if you could get Washington or the state capital politicos to agree on how to get there you would be the greatest motivator ever. In this politically charged and devisive climate we are lucky if we get a non-binding resolution to wish everyone Happy Birthday.
May 24, 2012
Before reading this book, I didn't think that there was an alternative tax system available, because I'd thought of the VAT as a money machine, and no other tax systems were worth the effort of reform (IMHO). Now I see that the VAT is actually the way to go. Before you decry me as a VAT enthusiast, take note that I used to think the VAT was too much to pay (from exposure in Australia and Europe). However, the establishment of the VAT plus the abolishment of income tax might actually be what this country needs.
June 26, 2012
Excellent history of USA Federal tax policy and how a VAT might work here. I loved his line where he thinks the Republicans and Democrats should just exchange their complaints about a VAT because then they'd be consistent re. their tax policy views, and like VAT! (Republicans take the Democrats' objection and make it similar to the Bush tax cuts and other regressive taxes they support: "it's regressive" and Democrats take the Republicans' objection and make it similar to other revenue raisers they support: "it's a money machine")
July 25, 2012
It is amazing how little most of us understadn about the tax system and how governments are funded. I found this book to be at just the right level for me. It explained the basics, but it did not hesitate to get into some complicated concepts. I probably understood 85 - 90% of it. A little disheartening because there are some big hurdles to overcome to return to some semblence of fiscal sanity. The bright side is that a lot of solutions have been tried elsewhere, so we do not need to reinvent the wheel.
March 20, 2012
While I cannot immediately agree with Mr. Bartlett's position, there is much of value in reading this book. First, Mr. Bartlett is able to write of complex, complicated matters in a way that is marked by clarity. This book is a great primer of the territory. Second, Mr. Bartlett clearly marks out what are his biases. This is a good place to start in dealing with an issue that is going to hit all of us in the US in our faces with the force of a jackhammer and much sooner than we care to think.
March 24, 2012
This book is by an adviser to Jack Kemp and President Reagan. It is an excellent primer for anyone wishing to know how our tax system has developed, its strengths, and weaknesses. It also discusses the political problems associated with tax reform. It reaches some surprising conclusions while it presents the problems in a reasonable and fair-minded manner. It is easy to read and a quality book.
May 18, 2012
I, surprisingly, really enjoyed this book. It's short, easy to read, and really informative. It helped me to understand a lot of things I sort of kinda knew (taxes help you buy houses, but how? tax credits and itimizations, etc). And it presented it all with limited jargon for all us non-economists. Made me want to study tax reform, although didn't make me very optimistic we'd fix the problems anytime soon.
November 3, 2013
This is the second book by Bruce Bartlett that I have read (Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy is the other)and I find his approach to writing very effective. Chapters are short and focused and the writing is straightforward. He makes the point he wants to make and moves on.
As for this book, it's an excellent primer on the tax reform issue. I learned a lot. Recommended.
As for this book, it's an excellent primer on the tax reform issue. I learned a lot. Recommended.
February 2, 2012
The book is slightly oversimplified in places, due to the broad scope of the book. Overall, however, I highly recommend the book for anyone who is interested in tax reform specifically or our country's fiscal health generally. Although the author tends to start from a right-of-center position, he pulls no punches against the right (GWB especially) and is very evenhanded in his critiques.
November 30, 2012
I read this book because I saw a very informative and interesting interview with the author on The Daily Show. Although the topics the book covers are indeed interesting, the writing itself was much less so. Unless you're a big time economics or political policy wonk, you'll likely find large sections of this book a bit dry and academic.
September 21, 2012
Who knew a book about the tax code could be interesting. Bartlett’s book explains the history, as well as exemptions, loopholes, deductions, how they came about, and what the repercussions are. He explains how taxes work in other countries. Bartlett advocates a consumption tax, but does not give much hope of that happening.
May 20, 2012
A sober view on issues of taxation and efficiency. You probably won't like it if you like making policy through the tax code rather than directly, but it should give everyone else a lot to think about (without being too technical).
March 19, 2012
I enjoyed this. I'm not a tax scholar, and this is a layman's overview of the works of a lot of experts. The book is non-partisan, although the author makes very pointed recommendations for reforms that he believes need to happen. I learned quite a bit.
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