The Pence administration is calling for a review of the Indiana tax code. The top goals are to simplify the code and to promote economic development. But another worthy goal, one that would boost the Indiana economy, is missing.
First, if the government is going to take our money, then it should do so as gently as possible. The U.S. income tax code is notoriously burdensome in terms of the billions of hours and dollars required to complete the paperwork. Governments will tax our money, but they shouldn’t unnecessarily tax our time too.
Second, all things equal, fiscal and regulatory policies should minimize the damage to the economy and increase the possibilities of economic development. It is important for policymakers to strive for this goal.