Unfortunately, lobbies abound for tax cuts for particular groups, but not for simplifying taxes. That definition requires interpretation by the filer and the IRS, adds lines to the tax return, and leads to audits. Furthermore, one group's win inevitably emboldens others to try their luck too. As concessions multiply, special rules proliferate. As tax collections from one group after another fall, the marginal tax rates needed to maintain government revenues increase, in turn creating more demand for special subsidies.
Many politicians claim their tax cuts help the poor.
Reporting the percentage change in income taxes can make a cut of even a few dollars sound like a big break for low-income workers. Three-quarters of tax filing units are already in the 15 percent bracket or the zero bracket. Extending the 15 percent bracket can't help them. It only helps the top 25 percent of filers. To be sure, high-income households do pay most of the income tax, but people must pay other taxes too.