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.

A Special Tax Cut For Beer Makers??

I’ve been pretty busy lately redoing my study. It needs a refresh after 17 years I think. I may miss a few posts here and there and some may seem kinda rushed. So, pardon me if you will, .. or won’t…

At this point, we can only hope and pray that enough Republicans vote on their principles rather than taking small measures offered to them in this monstrous 515-page tax bill.

canstockphoto2634021.jpgA BREAK FOR BOOZE: The Senate bill contains a special tax cut for makers of beer, wine and spirits, for no particular reason. (Perhaps it’s because these companies are doing their patriotic duty of keeping Americans in good cheer.) It would reduce levies on beer, wine and liquor produced in or imported into the country, and, while described as a boon for “craft beverage,” it would benefit the entire industry, saving it about $4.2 billion over 10 years. This is particularly galling because taxes on alcohol have not increased since 1991 and are calculated without an inflation adjustment, which means they have already shrunk substantially over time.

These policy changes, smuggled into the bill to please big Republican donors, would never survive a more transparent process. History will remember them for what they are: smaller scams aimed at winning support for a much bigger one.

Source: The Senate Is Rushing to Pass Its Tax Bill Because It Stinks – The New York Times

I’m just an ordinary guy but it seems to me that it would be a pretty easy thing to reform our taxes below the 515 pages in the Senate version. Those guys are back at it, putting in these loopholes to get a vote or two. If you want to simplify the income taxes then just do it.  If you have income, you pay taxes, it doesn’t matter where that income is from. The rich folks get their income from dividends and such but how is that really any different from the guy who has a 9-5 job to get his? Forget all these deductions. I know it would be hard to swallow for some of us, but let’s just go cold turkey.

I think I could write a tax reform bill that would fit on a couple of pages. It’s easy to simply the hell out of it and then add back what is absolutely needed than the other way around.

I am a fiscal conservative and a deficit hawk and since the GOP seems to have abandoned that idea and the Dems never had it, where is a guy like me supposed to go?

I hate to be a broken record but my solution is the Centrists.