Editor’s Note: The one thing both Democrats and Republicans agree on is their desire to close tax loopholes. That is bad news for the economy, because as Ludwig von Mises said, “Capitalism breathes through those loopholes.” Closing loopholes to “broaden the tax base” has been a supply-sider, Republican economic policy plank for decades. Murray Rothbard challenged this fetish from the pages of the Mises Institute’s The Free Market. This article originally ran as “The Return Of The Tax Credit” in the July 1988 issue of The Free Market, and is included in the collection Making Economic Sense.

http://lewrockwell.com/rothbard/rothbard313.html