LESSONS FROM 1986 - HOT BUTTONS AND 3RD RAILS

As the political arena once again considers tax reform, several lesson s can be learned from the Tax Reform Act of 1986. Presidential leaders hip, support, and commitment are critically important to tax reform's ultimate success, and the political context for passing tax reform has to be just right. Chairmen of the two tax-writing committees must tak e charge of tax reform to shepherd it through the Congressional maw. T he politics of fax reform are local and are largely determined on the individual side. issues of tax fairness, progressivity, and distributi onal neutrality are politically potent issues that will likely dominat e the tax reform debate and determine its outcome. And, finally, conse nsus building leads to legislation that is more incremental in nature and makes a 1986-like reform bill more probable than radical reform.