Despite everything we still adhere to the belief that a tax system should be based on a broad base and low rates. Tax everything — a little. That system minimizes economic distortions, makes compliance and administration easier, and ultimately raises more revenue. And political machinations distorting this ideal don’t work.
The latest example of the government’s failure to influence the economy comes from Wisconsin. The Wisconsin Budget Project, a small but fierce outfit in Madison, released a study recently that shows the state’s manufacturing and agriculture credit (MAC) did little to boost the economy or create jobs. We don’t always agree with the folks at the project. Indeed, we rarely agree with them. But they deserve a lot of credit for this study.More Info