The Year Of Tax Reform

Not really but it makes a good title and a good slogan to keep idiots in line.

The GOP is scrambling to find something anything that they can hang their hats on….so far they are batting 1000 in failures….but like any good GOP they want the rich to get more of their money while the rest us struggle.

The Chamber of Commerce has thrown their hat into the GOP ring as far as taxes go……here are their ideas…..

  • Lower rates for all businesses – Our C corporations and pass-through entities face some of the highest marginal rates in the world. And, to top that off, while other countries are slashing rates, we are falling behind simply by standing still. It’s time to cut rates for all businesses.
  • An internationally competitive system – We are the last member of the major industrialized OECD countries to cling to an anti-competitive worldwide system of taxation. Let’s jettison that like a Members Only® jacket at the end of the 1980s and adopt an internationally competitive territorial system of taxation. And while we are doing that, let’s make sure any anti-abuse rules are minimally invasive and that we use a bifurcated rate on any previously untaxed earnings. After all, that cash isn’t just sitting offshore taking a vacation – much of it has been reinvested in property, plant, and equipment, or used in restructuring so companies can stay globally competitive.
  • Faster cost recovery – Let’s let businesses write off their investments more quickly so they can focus on doing what they do best: drive economic growth and job creation. And let’s make sure our research and development incentives encourage conducting research in the United States and locating the ensuing intellectual property that is created here.
  • Investment taxes –Taxes on investment income and capital gains drive up the cost of capital, thereby reducing the amount of capital productively employed, productivity, wage gains, and international competitiveness. We strongly urge that in tax reform, investment taxes be kept as low as possible to avoid damaging economic ramifications.
  • Compliance – No surprises here – the business community would like to see less complex tax rules to reduce compliance costs!
  • Transition rules – How we get from here to there is as important as the new tax regime we adopt. Tax reform should include effective transition rules to provide adequate time for implementation of any new system of taxation and to help minimize economic hardships that businesses may encounter in moving to a new tax system.
  • Certainty – The uncertainty plaguing the business community under the current tax code is paralyzing. Businesses need to know the rules of the road to best allocate resources. To have the most pro-growth impact, tax reform should be permanent to allow businesses to expand, create jobs, and remain competitive in the United States and abroad.

If the idiots in Congress ever admit defeat on health care then they will most likely move on to tax reform…..after ll it is popular if just about everybody in their party…..

The problem is that it will not be reform…..rather just a set of tax breaks for those that need no tax breaks….so there will be a new game in town…..coming soon to a channel near you.

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9 thoughts on “The Year Of Tax Reform

  1. Unfortunately “reform” often is not reform at all just different. For me the injustice is taxing my social security and my pension. I already paid income tax when I was working. Corporate tax reduction often does not stimulate employment. It give investors more profit and they invest in non job creating like gold or real estate or in other countries.

    1. I agree those programs should be tax exempt…..then they get incentives also that lets them pay less than nothing (not possible I know but it seems so)……chuq

  2. On the other hand 50% of the nation’s worker’s (and none of 11 million illegals) pay any income tax as according to income and number of dependents they get 100% of what was taken out as tax refund. Then they are awarded $2,500 rebate for each kid ! They continue to be awarded food stamps, section 8 housing and medicaid.

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