An interesting article in the Washington Post today on where the wind is blowing in DC over tax reform. While tax reform would have on the whole been a rather big bore to me out of college (I was never a good economics student), it effects my lively hood. Taxes incentivize (or deincentivize) every aspect of our economy and has a huge impact on the choices we make, even if we don't realize it. Tax advantages for certain businesses may make a sector thrive and many people gainfully employed. Changing those incentives can have huge ripple effects that can hurt those directly employed in an industry on down to everyone that those businesses and employees do business with.
Since I develop affordable housing that relies on tax-exempt debt and federal tax credits, changing the Internal Revenue Code can make investor's no longer want either of the two key pieces I use to finance our developments.
I strongly support the Bush Administration, but on a personal level I am glad to see that my industry will not take a major turn for the worse. Social Security reform is extremely important to those of my generation that don't see how the pay as you go system can ever support us. It is also important to take care of the people who have banked on SS being their for them as they near retirement. Transitioning large social programs are expensive.
It will be an interesting political year in 2005 as Bush begins to spend the last of his political capital. Let's see what he buys.