As discussed before, the starting point for strategy comes when you and your team can clearly identify
Ends - the goals you want to achieve
Means - the resources you have available
Ways - the methods with which you'll take action
This trio of strategy components can serve as a framework when tax agencies partner with the legislative and executive branches to create tax policy.
Tax agencies have a cooperative role to play in forging tax policy. This is by design. The separation of powers is a hallmark of James Madison's vision for the United States Constitution. It is a key component of American greatness. It is also a constraint on unilateral tax policy making by tax agencies. Therefore, if tax agencies want to play a role in forging tax policy, they must work with the legislative and executive branches.
Aiming to impact tax policy is a worthy end. Tax agencies see the impact of tax policy more frequently than most other stakeholders. They have a broad and comprehensive view of the tax ecosystem. They have information and perspective that can inform other policy makers, helping to produce better results.
In these policy partnerships, tax agencies must prove their worth. The legislature can pass laws without input from the tax agency. The executive can make decisions without input from tax agencies. To earn a seat at the table, a tax agency must prove its capability, usefulness and responsiveness.
The ways a tax agency proves its usefulness will differ with two distinct yet equally important partners: the legislature and the executive.
