McCain and Obama on Tax Reform

McCain's tax cuts would help those with very high incomes; Obama would offer breaks to low- and middle-income earners and increase the burden on the rich
Getty Images

Hardly anyone disagrees with this statement: The nation's tax system is a mess. The U.S. tax code is riddled with far too many deductions, credits, exemptions, exclusions, phase-ins, and phase-outs. Nobel laureate Milton Friedman noted half a century ago that constant changes in the tax code discourage long-term planning by households and businesses. He was right, but that hasn't stopped Democrats and Republicans from tinkering with taxes ever since the income tax was imposed in 1913.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.