A growing number of economists say the U.S. needs a consumption levy that rewards thrift and enterprise and cuts down on those maddening forms. Taxpayers are angered not only by how much they pay but also by how little the other guy pays, by the sense that the system is somehow corrupt, and by the reality of just how complicated the tax codes are. Their feelings are aggravated by the growing realization that despite all the talk of simplification in recent years, the laws are now more complex, not less. Economists and politicians of many stripes charge that the 1986 reforms have dragged down the U.S. economy by publishing hard work, thrift and investment while encouraging Americans to borrow and spend beyond their means.
Liberals attack the current system as both unfair and unproductive.
It undermines the productivity of the entire economy. But the Brown plan is not well thought out. It would raise taxes on the working poor, cut taxes on the wealthy and further swell the budget deficit. It is more simpleminded than simple, less a plan than a slogan. Nevertheless, Brown may be onto something.