There's Stuff to Like in the Republican Tax Plan

With the presidency and both houses of Congress in their grasp, Republicans have a rare opportunity to make policy reforms. So far, nothing major has been done. On health care, the GOP failed to advance legislation. Now attention is turning to tax reform. Let's hope the fact that taxes aren’t as much of a hot-button issue as health care will lead to something getting done, because the Republican plan contains some pretty sensible stuff.

When most people think about taxes, they think about what economists refer to as distribution -- who pays more, who pays less and who reaps the benefits. Distribution is obviously incredibly important, but economists generally feel uncomfortable weighing in on it, because there’s a moral element to deciding who should get what. Instead of taking sides, they like to focus on efficiency -- growing the pie so that politicians have more to distribute in the first place.