Masks, Magic & Games: The Use of Tax Law as a Policy Tool
American Journal of Tax Policy, Vol. 4, p. 41, 1985
39 Pages Posted: 14 Apr 2010
Date Written: 1985
Congress often uses the Internal Revenue Code to accomplish policy goals other than mere revenue raising. Such uses result in complicated statutes, which tax lawyers seek to manipulate. Often, we frustrate the apparent statutory goals with much paperwork. Clients love this, but they learn to dis-respect the system as a result. This breeds contempt and further gaming of the tax system, which breeds complicated rules designed to frustrate the games, which breeds more games, and so forth.
Use of the tax system to accomplish policy goals is counter-productive. We need to stop doing it.
Keywords: tax, tax policy, gift leaseback
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