Tax Reform??

2017-12-16_10-44-43.png I want to start this post off by saying I think there are some good parts to the current tax bill that is now the law of the land.  I have always thought that we should quit taxing corporations and instead put the full tax on the shareholders/owners of the corporation.  At least they got the first part right, putting the bill on the shareholders is another story. This bill was advertised as “tax reform” but in reality, it does nothing to eliminate all the inequities of the current tax code.  Very few loopholes were closed, in fact, many more were added to reward this donor or that one or to get every GOP Senator to vote for it.

The only way to even begin to have a tax code that is equitable to all is to pretty much throw out what we have and start over again.  We need to tax all income as “income”, it doesn’t matter where it came from or where it is going. People living off past generation’s wealth often pay considerably less as a percentage of taxes than those who draw a salary or hourly wage.  That to me is inequality at its worst.

But, the biggest problem with the current tax code is the loopholes that allow many to not pay their fair share of taxes. The current Oval Office holder is certainly one of that group. Since there are so many loopholes the only way to do it is to just start over. You pay taxes on your income and then spend your money as you want. If you want to give to your church to fund your Sunday get-togethers, by all means, do that.  If instead, you want to spend money country club fees for your Sunday get-togethers that’s fine too. The government should not be subsidizing either of those choices.

I do want to separate discretionary income form non-discretionary.  That is everyone needs a certain amount of money for basic life services.  This includes things like healthcare, housing, food, and transportation. After those basic needs are fulfilled then the income tax pops up the same for everyone. When I say “basic” I don’t mean million dollar homes or $200,000 cars. The same “basic” applies to everyone.

I know this type of real tax reform would cause a significant loss of jobs in the lobbyist population. In fact, it would pretty much eliminate those folks entirely.  It would also drastically reduce the need for income tax preparers and IRS people to check them. Most, if not practically everyone would be able to file their taxes themselves. In fact, I kinda like the idea of the IRS informing me of what tax I owe and if I agree you don’t even have to do anything.  Wouldn’t that be something?

I hope someday lawmakers will finally realize that a simpler approach to taxes would be more equitable for all.  But I just don’t see that kind of courage in this current lot of federal representatives.

3 thoughts on “Tax Reform??

  • I think the new bill is a good start. Would like to get rid of all deductions but that really upsets people. May have to do it gradually. Still hoping for filing on a postcard.

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    • Thanks for the thoughts Judy. I want to be sure I am clearly stating what I think of this bill. I do say that the corporate rate should be reduced and that is a good thing. But to then just stop there is not. There is so much pork and nonrelated stuff in this to make one sick. It looks like no one beyond Ryan’s inner circle even knows what is in it. I think this may be the first time that a budget has purposely been passed that everyone knows will result in massive increases of debt.

      About 10% of the bill is good, the rest simply stinks…

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  • Guess we’ll have to agree to disagree. I attempted to read the real deal, but found it difficult so I have relied on analysis of others attempting to get a balance, which is difficult. So far I like about 80 percent of what I know of the bill. There are certainly some things I would change, but most people will get tax relief and I think it will be a real boon to business. While I am in favor of a safety net, I prefer that people work and I think most people would prefer to do so. So job creation is very important. I especially like the limited relief it gives to “pass through” businesses having had one myself at one time. We should definitely support small business in this country. I wish many cuts were not expiring in 10 years. but I understand that passing it under “budget reconciliation” required that. I wish Democrats had participated and it could have been passed in the normal manner.

    Unfortunately every bill seems to contain some pork. As you may recall to get Obamacare passed Democrats added all sorts of unrelated pork. It is not a good system, for sure.

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