TRUMP’S HOLISTIC APPROACH TO TAX REFORM BENEFITS EVERYONE

 

 

TRUMP’S HOLISTIC APPROACH TO TAX REFORM BENEFITS EVERYONE

 

Serious minded tax reformists, whether liberal or conservative, should applaud the president’s innovative approach to tax reform. Most former presidents have offered piecemeal tax legislation in the form of tax cuts or tax increases designed to benefit or penalize a particular group. Trump’s current substantive tax proposal demonstrates his understanding of the problem and how to get it fixed. The federal tax code is one of the most complicated pieces of legislation ever created, and because taxation is an issue of dollars and cents that hits everyone’s pocketbook, the best way to do tax reform is to simplify the code and provide tax relief for everyone.  Trump’s proposal does exactly that, despite what some media sources have reported.

 

If you read the New York Times and some other liberal media, you would think that Mr. Trump is on a quest to help the rich escape their tax responsibility. Last week, a New York Times headline suggested that the tax reform proposal is meant to help the rich avoid paying taxes and will “individually benefit” Mr. Trump and his many businesses. CNN, in a special report, said that if this had been the tax law in 2016, Mr. Trump would have paid an estimated 5 million dollars in taxes as opposed to 31 million dollars mandated under existing tax law.  However, what the media are not telling us is how the tax reform will benefit people from main street by cutting the tax rates and allowing hard working Americans to keep more of their hard-earned cash. What we have not heard is how the proposal would allow companies like Apple who hold nearly a trillion dollars overseas to repatriate those funds to create new jobs that would benefit many Americans.

 

The problem we have in this country is that bipartisanship has become so engrained, that no matter how good the idea is, no matter how much it would benefit Americans, if the idea is not proposed by our party, we oppose it.  The opposition is for opposition’s sake,  not because it is a bad idea but because we do not like the party or politician who proposes it.  It is no secret the tax code is a monster that even tax experts sometimes have trouble understanding. The president is proposing to cut the tax code from seven categories to three. Within his proposal is the notion that a lower tax burden would help the economy grow, something most liberals do not understand. Taxation and spending are not a sustainable way to grow an economy. Accompanying the tax reform proposal is the overhaul of the regulatory bureaucracy that stifles economic growth.

 

Crowed Americans for Tax Reform (CATR) opined that Trump’s Plan would turbocharge the economy. Other observers have said that his tax proposal will harmonize tax rates between corporations and small businesses, reduce tax rates for medium income level workers, provide a greater deduction for married couples, reduce business tax rates by more than half (35% versus 15%); eliminate loopholes that allow corporations and other high earners to pay less.

 

Taxation is a polarizing issue that creates division even among like-minded people. There will be some in Congress, even in the Republican party, who may not like everything about Trump’s tax proposal. For example, Congressman Peter King, a Republican from Long Island, New York told the Wall Street Journal that he might not support the tax reform proposal because of the elimination of property tax deduction, and other deductions that taxpayers often avail themselves to for the purpose of reducing their federal tax burden.

 

Democrats, like Senator Charles Schumer of New York, and Nancy Pelosi of California are bracing for a fight, criticizing the tax reform plan even before the president had an opportunity to announce the proposal. They complain that the tax plan offers no concessions for them to support it. By concessions, they mean higher taxes. In a recent press conference, Schumer said: ” killing tax breaks would devastate the middle class.”

 

Mr. Trump knows that he may not get everything he wants, but he has started the negotiations.  Like any good negotiator would – he will settle for 20% of what he is asking for. For example, he is proposing a new corporate tax rate of 15%, a final legislation that reduces the corporate tax burden even to 23% would be a well-deserved victory for Mr. Trump.  Say what you will about Mr. Trump, no one understands politics better, no one understands the ways of Washington better than the 45th President.

 

Perhaps, in the end, we may end up with legislation that reduces taxes for everyone, maybe not by as much as Mr. Trump wants, but a victory nevertheless for having the chutzpah to propose such a wide-ranging recasting of American taxes that gives everyone something. For those who say his proposal will benefit the rich, let us remind them that the rich pay more in taxes and creates more jobs. Now, it is time for a united GOP Conference to get behind the proposal. The Freedom Caucus, the Tuesday Groups and others must coalesce around it, and Omega readers can call their senators and congressmen to tell them to vote “YES” on Trump’s tax reform proposal.

 

E.Roy

Chief Editor

Omegaworldnews.com

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