It is true that having fewer tax rates would be good for growth in the neoclassical view. Moreover, less tweaking of rates by having fewer rates certainly reduces the chances of cronyism or political favouritism. But this should be weighed against concerns about fairness (or ‘progressivity’)—indirect taxes are generally considered ‘regressive’ because a poor person pays the same percentage of tax on his or her consumption as a rich person when they buy the same product.
