Conrad Lucas: Major reform of nation's tax system badly needed

Tuesday, 19 Sep, 2017

"Everyone is talking a good game and everyone knows the needs, but the problem is where to get the money", said Ray LaHood, a former Republican congressman and Transportation Secretary under President Barack Obama and a forceful infrastructure advocate.

The key to achieving these goals - and growing our majority in both the House and Senate next year - is to pass simple, popular, tax cut legislation by this year's end - preferably by Thanksgiving. Its staff posed the following question: If the USA created a tax code that eliminated virtually all personal and corporate tax breaks, and also required that the plan be revenue neutral--meaning that receipts in 20 years had to match the numbers forecast today--how low could rates go?

He anticipates that Trump would say that he received more money for border security and that he is putting in cameras, censors and an electric grid "that if anybody was near the grid, it sounded an alarm". "Our shared commitment to fixing America's broken tax code represents a once-in-a-generation opportunity".

A poll released Thursday by the pro-tax reform Club for Growth, conducted by Fabrizio, Lee and Associates, put it bluntly: "If Republicans fail to pass tax reform, the situation will be bleak". By cutting the rate, they will be incentivized to keep their money in America. He even suggested that the rich might get their taxes increased: "I think the wealthy will be pretty much where they are".

Williams traces this shift back to the 1980s' tax reforms, which gave service businesses - such as law firms, accounting firms and others - incentives to change their compensation structure from wages and salaries to profits. "It's very, very hard to envision how you would piece it together". "That's more important than anything else".

Trump insists that slashing the corporate tax rate from 35 percent to as low as 15 percent would free up valuable cash.

Last week, after a Trump Twitter storm, House Speaker Paul Ryan promised an expeditious timetable, one other Republicans consider unrealistic.

In a 2014 paper, two economists - Alexander Ljungqvist of New York University and Michael Smolyansky of the Federal Reserve - concluded that state corporate tax cuts did little to strengthen economic activity unless the cuts were made during a recession. They've won, for now, a $200 billion package of spending cuts as part of the House budget resolution, which has stalled after committee approval this summer. "It greatly favors one state over another".

It's become increasingly apparent that there are two simultaneous, contrary tracks running on tax reform.

After 238 days of having control of the White House and both houses of Congress, the GOP has only one major legislative achievement - the Senate confirmation of Supreme Court Justice Neil Gorsuch. This budget upholds the promise Republicans have made to the American people to not increase the tax burden on middle-class Americans and to take serious measures to stop the over-spending of our tax dollars by Washington. "It would be devastating. But they're still rooting for him", September 11). When the nonpartisan Tax Policy Center published an analysis this week, it found that even if virtually all tax breaks were eliminated, the corporate rate could drop only to 26 percent without increasing the deficit.

Here are the main questions taxpayers and investors hope the plan will address.

Those who can not see this burden are living with blinders on or are blissfully unaware of the plight of the middle class.

To most Republicans, that's just as it should be - justice demands that those noble job creators be relieved of the awful burden of taxation.

Even if you eliminated everything in the rest of the federal budget - from education to meals on wheels - you're not going to get almost enough to pay for the giant tax cuts Trump and his corporate and Wall Street Republicans are talking about.

He said that residents of states with low taxes would benefit at the expense of his constituents, who no longer could deduct their state and local levies.

"Let me be clear". He said he wants to avoid the problems Congress had in repealing and replacing the Affordable Care Act.

"They're starting to talk about tax cuts instead of tax reform", said former Sen.

Since the Charlottesville blowup in mid August, when the president's fortunes were at low ebb - and I'll repeat my view that there's not a racist, hateful, white supremacist bone in Trump's body - we've witnessed a dramatic executive turnaround.