CLEP US Government

Category - Policy Processes

Significant tax reform in the US is normally difficult because:
  1. Presidents hate making changes.
  2. Interest groups fight hard to keep tax rules that favor them.
  3. Tax laws cannot change without a constitutional amendment.
  4. No one really thinks there is anything wrong with the current system.
  5. Congress is fearful of unintended consequences.
Explanation
Answer: B -Significant tax reform in the US is normally difficult because interest groups fight hard to keep tax rules that favor them. The current tax system has a lot of rules that favor different interest groups. If you dramatically change the system, then those interest groups may lose their tax privileges. Therefore, interest groups fight very hard to keep the tax code essentially the same. Given the money and number of votes that interest groups can provide, politicians are generally reluctant to make some interest groups angry.
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