The Failure of U.S. Tax Policy: Revenue and Politics

Mr. Pollack's book is an historical and critical review of the politics of the federal income tax. Because he focuses on tax complexity as a political phenomenom, the book is a highly useful addition to the tax literature, and is somewhat unique in its focus. Chapter 7, on the causes of tax complexity, is especially interesting reading. While the causes of tax complexity are well-known, Mr. Pollack does an excellent job of discussing the various causes and why these factors are so intractible. Also useful is his discussion of the tax reform criteria 'fairness' and 'vertical equity'. Pollack points out that these terms cannot be objectively defined- fairness and vertical equity are subjective concepts that continually add to the complexity of the tax code. By and large, the book maintains a dispassionate, impartial attitude toward the tax reform debate. The author adds a 'postscript' on the 'flat tax' that is, however, somewhat partisan, and, for that reason, disappointing. He rails against the 'fairness' of the flat tax, after the bulk of the book is devoted to emphasizing that 'fairness' is a subjective matter. He questions whether the flat tax would really be any simpler than the current income tax. The flat tax is a wage tax; how could it not be simpler? Finally, he notes that there would be significant transition issues to deal with in switching to a different system of collecting revenue. That's certainly correct, but hardly a compelling reason to stick with the current mess