Base Broadening Gone Wrong: Work-Related Costs and the TCJA
Tax Notes Federal, 2019
13 Pages Posted: 30 Sep 2019
Date Written: July 22, 2019
Tax policy scholars often advocate broadening the tax base. Not all base broadening is created equal, however. A fundamental tax policy principle, firmly grounded in economic theory, requires that an income tax allow deductions for the costs of earning income, including work-related costs. Base broadening that removes those deductions is misdirected. Unfortunately, the Tax Cuts and Jobs Act implemented that type of base broadening by suspending tax relief for moving expenses and employee business expenses for 2018 through 2025.
Suggested Citation: Suggested Citation