Complexity & Uncertainty

Megan has a great post on why it doesn’t pay to change the tax code over aggressively. If you’ve read me for a while, you know I favor gradualism in policy changes, particularly tax policy. You can plan around a bad tax policy, but no one can plan around an ever shifting tax policy. Megan puts her finger on it: it’s an issue of wasting human capital. People have better and more beneficial things to do than working on their reaction to mercurial policy shifts.

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