No Crony Capitalism

Chuck Colson has an interesting commentary today. His friend, Rep. Frank Wolf, whom he admires, has challenged tax breaks for special interests and Colson agrees with him. So do I. General tax rate increases are business killers. Loopholes for particular companies or industries, though, are reprehensible. Take the example of ethanol subsidies.

In my June 11, 2011 post I pointed out that there had been an on-going pork barrel handout to agri-business of $6 billion/year that had badly distorted the corn market and increased food prices. There are also tax breaks associated with this industry. Bunk! If ethanol can't compete without subsidies and tax breaks, it's too darn bad and eliminating them is not a "tax increase."

Cleaning up tax loopholes would eliminate a lot of other similar economic inefficiencies - businesses would either have to compete or perish. The tax bite on the rest of us would also potentially moderate and I suspect there would be no complaints there. So don't be confused when you hear special interests squealing like stuck pigs about "tax increases" and "principles." Closing loopholes for narrow special interests is good public policy.

www.breakpoint.org/bpcommentaries/entry/13/17981