As the filing deadline for individual income tax returns approaches on April 15, people are a bit uncertain about some of the changes in the federal “tax reform” law passed in 2017, The Hill reported. Millions of tax returns have been submitted, but indications are that they are coming in slower than usual. Tax experts often speak of three principles of taxation, which are fairness, simplicity and efficiency. These three principles are sometimes called the “holy trinity” of taxation. The success of the 2017 tax law on these criteria is indeed a matter of controversy. However, there is another standard that may arouse even more debate. Some tax policy texts refer to a fourth goal of “revenue sufficiency.” It would seem so fundamental as to not even bear saying. Yet after almost two decades of consistent and sometimes enormous federal budget deficits, which are today clearly far too large, perhaps we should etch this fourth principle in stone. The 2017 tax law took our already oversized deficits and made them even larger. Assuming all of its provisions are made permanent, that will expand the deficits and the debt by more than $2 trillion over 10 years, with larger and larger deficits thereafter. Some of the most generous provisions for typical taxpayers were originally made temporary, so that the price tag would look smaller in the legislation. Those provisions are certain to be made permanent without some very real soul searching.
