Tax reform, spending cuts are needed

Saturday, 22 April 2017, 01:41:03 AM. Tax reform is one of the big ticket items on the Republican Party’s wish list for this year. President Trump supports overhauling America’s tax code. House Speaker Paul Ryan outlined tax reform as a major step in his “A Better Way” blueprint.
ANALYSIS/OPINION: Tax reform is one of the big ticket items on the Republican Party’s wish list for this year. President Trump supports overhauling America’s tax code. House Speaker Paul Ryan outlined tax reform as a major step in his “A Better Way” blueprint. Tax reform has been a spectacular success in the past, when it was done right.  In the 1960’s, President Kennedy cut taxes and the economy soared.  In the 1980’s, President Reagan cut taxes and the economy took off.  In the early 2000’s, the Bush tax cuts pulled the nation out of the Clinton recession. Unfortunately, the current plans for “Tax Reform” don’t really include meaningful tax cuts.  Yes, the plan will reduce certain taxes.  But the problem is the Republicans want any tax reform to be “revenue neutral.”  In plain, non-politician English, that means that for every tax cut made, there has to be a corresponding tax increase! There is another name for this concept. It is called rearranging deck chairs on the Titanic. Simply changing who pays taxes without cutting the actual tax burden is insanity. The Border Adjustment Tax is a classic example of insanity.  It is a part of the proposed tax reform package.  The idea of the Border Adjustment Tax (or BAT) is simple. Imports are to be taxed as they come into the country. This will make imports more expensive than domestically produced items. This ignores the fact that some imported items cannot be easily replaced by domestically produced items and it also ignores the...Read more
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