Chapter 9

Chapter 9 - Chapter 9 The Two-Pitcher Lunch Julia Cedarholm...

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Chapter 9 “The Two-Pitcher Lunch” Julia Cedarholm At the beginning of the chapter, over lunch Packwood and Defienderfer discuss the issues of the stagnant and worsening position of the Tax Reform Bill. Packwood discussed two different options with the reform. He could either take the “stripped-down” approach; however, this would look like defeat to the Washington politicians. It included a rate in the range of 40% which only imposed a minimum tax and took families below poverty level off of the income tax rolls. This didn’t seem like a good enough solution. Packwood wanted to solve the issue while maintaining his reputation in order to be reelected. Packwood was getting a bad reputation for taking contributions from special interests groups and being influenced by their contributions in the process of the reform bill. The other approach that Packwood introduced was the “radical approach”. This entailed the pairing away of enough deductions exclusions, and credits in the code to halve the top individual tax rate to 25%. It would have a 33% top corporate rate and be revenue neutral. This low rate would have to be paid for by eliminating tax breaks.
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This note was uploaded on 04/01/2012 for the course POLI 100 taught by Professor Rabinowitz during the Fall '07 term at UNC.

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Chapter 9 - Chapter 9 The Two-Pitcher Lunch Julia Cedarholm...

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