When in Doubt, Regulate?
By Arnold Kling
In my view, that is what we can expect from the next Administration.
From a tax perspective, the Democrats will be constrained. All of their beloved “middle-class tax breaks” will be inoperative unless the Alternative Minimum Tax is curtailed. The tax increases that they plan for high-income taxpayers will serve mostly to make up for lost revenue from reforming the AMT. There will be essentially nothing left over for new spending.
…How can the Democrats implement policy changes without large spending increases? The answer is regulation. The business sector is going to be increasingly told what to sell and how to sell it. Particularly in health care and energy, firms are going to be accountable to bureaucrats, not to customers. Products and services will be designed in Washington, not by competition.
As I mentioned here, Alfred Kahn has similar fears.