Occam's Tax Code

Not so long ago in Torts, we discussed Occam's razor as it relates to strict liability. The razor is the 14th century principle of lex parsimoniae; that is, that, all other things being equal, the simplest solution tends to be the right one. What followed was a delightfully intellectual discussion that does not need repeating here. Rather, it made me think about all the places in life that the razor would make life that much better.

As we get into election season (not that today is any different than the last eight months), it occurred to me that my vote should go to the one who follows the concept of the razor most closely, specifically regarding the tax code. The version just recommended by Charlie Rangel (D-NY) had tortious action performed upon it by CNBC, and rightfully so. Even though it keeps the AMT at bay, and reduces top corporate taxes, it raises taxes elsewhere (for example, a 4% surtax on all AGI over $200,000, which I suspect several of my readers make or will be making). In fact, as the report from the Tax Foundation states, "almost all of the 90 million taxpayers whom Rangel claims would pay less under his tax plan would still end up paying more to Uncle Sam in 2011 as a result of the tax cuts' expiring."

Fortunately, it's unlikely that this bill will pass before 2009, and then only if a Democrat takes the White House. For that reason, this goes as a large point in the "con" column for voting Democratic. I still put my support behind Ron Paul (who, incidentally, will be on the Tonight Show tomorrow), because it seems that his tax code is the most Occam-like. Simple solution indeed.