Now that the Senate has well and truly screwed the pooch on health care, they are taking up tax reform. A few select pieces of commentary:
Trump pitches tax cut as ‘middle class miracle’
Tax reform: Trump, GOP mull surcharge on wealthy, doubling standard deduction
GOP tax plan still has lots of holes and a surprising twist – Cowen analyst
Norquist: GOP Tax Cut Plan Will Turbo-charge the Economy
House Freedom Caucus Supports Trump’s Tax Plan
Here, from that last article, are the outlines of the proposal, with my comments.
-The lowest federal income tax bracket for individuals will sit at 12 percent, an increase from 10 percent, but will be offset by an expansion of the child tax credit. There will be three brackets total, down from seven, with the other two at 25 and 35 percent.
A good start. I’d vastly prefer just one rate, for everyone. I’d actually prefer a consumption tax rather than the intrusive income tax, which requires you to disclose all of your personal financial affairs to the Imperial government every year.
-The small business tax rate will drop to 25 percent, the lowest in America since the 1930s.
Again, a good start. Why not zero?
-The corporate tax rate will be decreased from 35 percent to 20 percent, prompting American money to come home from overseas.
Again, why not zero? Businesses don’t pay taxes, they collect them. Corporate and small business taxes are paid by consumers; the cost of the tax and the administration required to calculate it are added in to the cost of every product. Business taxes are just a backhanded way to add another tax onto the people.
-The child tax credit will be expanded. Administration officials nor the President will provide an exact number and will rely on proper congressional committees to come up with one they deem appropriate.
I’ve never been quite certain of the purpose of this tax. Certainly it makes financial life a little easier for parents, especially younger parents who tend to be harder pressed. And it’s certainly a vote-getter. But are we subsidizing people to reproduce?
-Rewriting tax regulations so Americans can complete their taxes on a single page.
Oh hell yeah.
-Getting rid of double taxes, including the death tax.
About damn time. Get rid of the capital-gains tax while you’re at it. If double taxation is wrong in one case, it’s wrong in any case.
-Eliminate itemized deductions
I’m generally in favor of this, as long as the overall tax burden is decreased. And make no mistake; this provision will be vigorously opposed by the enormous tax-return preparation industry, accountants and tax attorneys across this golden land. These people are desperately afraid of having to earn an honest living.
-Eliminate state and local deductions
This will suck if you live in a blue state, like New York or California. This provision now allows you to deduct from your Imperial tax return’s taxable income the amount you pay in state and local taxes. I’d say this: Don’t like it? Take it up with your state and local governments. This provision offers a shield to high-tax states, and it would be interesting to see the backlash from removing this deduction.
-Charitable deductions are not changing
-Retirement taxes will not be touched
-Mortgage deductions will not change
No change, no comment.
I would like to interject one thing in this debate, intended for when I hear opponents whine about “how the GOP intends to pay for this” (always from the same people who propose enormous new spending programs while never worrying about how to pay for those). That interjection is this:
Fuck you. Cut spending.
That goes for both political parties.
The nation is now past $20 trillion in debt. Add in unfunded liabilities in Social Security, Medicare and Medicaid and we’re waaaaaaay past that. We are broke, True Believers, and it would be nice if someone – anyone – in the Imperial City would figure that out.
But back to the tax proposal. I’ll cautiously characterize this as “a good start.” As far as its chances of passing, I’m not so optimistic. This GOP Congress could fuck up a soup sandwich. I’m guessing they’ll screw this up too.