…….. I have predicted from day one that “do nothing” Congress will do nothing about taxes as along as the Swamp is still in control. -PT
I can foresee them (the swamp) doing something ….. some day. That day will be when a real budget/spending/debt/dollar crisis sets in, after the decades of unconscionable U.S. federal deficits which have been enabled by the fact that the dollar is the world’s reserve currency and the world and the U.S. investors buy the Treasury debt, more and more of it, any quantity, for any debt level the U.S. must incur.…..something an Argentina or Mexico or Poland, or Thailand could never get away with, as America has gotten away with it, because their ordinary and non-reserve currencies soon collapse (as all of those mentioned have done at times in the past). The movement is under way to push the dollar aside as the world’s reserve currency. That will mean no more ability to sell any quantity of U.S. Treasury debt which the government an the Fed want to. When that crisis occurs, dollar value collapsing, the “doing something” tax reform will involve the “national sales tax”, the consumption tax (VAT). It will not replace the income tax. Some kind of flimflam reform of the income tax code will go along with the new consumption taxation to give the appearance of a “new world order for the dollar” and for spending and revenue. The purpose and effect will have to be to enable government spending at a higher percentage of GDP….. now our GDP will be both income taxed and consumption taxed….different rates for different folks and for different products/services….. and more social engineering to boot. America becomes like EC…..federal spending rising to 30% of GDP, 40%, more…. And guess what?…They still they will run deficits because the people still have so many needs which the government must meet….a kind and compassionate and generous government serving the people through doling out money, and legislative favors……and the rights to (you name it). The people of this res publica become groveling, miserable, serfs….. beggars (as so many of us already are). Give them panem et circenses. 95% of them will not know understand why they are miserable, groveling serfs, and they will not be taught the truth about the American golden age and its basis, The Founding and The Constitution. They will just be taught how to submit and how to demand their goodies and their “rights”……or else!
I can’t say I don’t care because I do. But I shouldn’t …..because there is nothing I can do except gripe (that’s a special privilege granted to old farts) and because there are a lot more miles behind me than remain before me and when gone it no longer matters, not to me …… body, mind and soul cease. Poof! Peace.-LM
The Trump administration released a thumbnail sketch last week of its much anticipated tax plan, which has generated opposition and support from all the usual suspects. Politics aside, the best tax plan is also the simplest: I have long advocated that the sole source of general revenues should come from a flat tax, preferably on consumption and not income. A consumption tax eliminates the enormous difficulties of separating out capital gains, which are typically taxed at a lower rate, from ordinary income, taxed at a higher rate. No other forms of ad hoc taxation, such as the notorious medical device tax, should be used to raise general revenues. On tax design, the Trump plan offers a mixed bag…
I remember when Reagan was going to simplify the tax code. Result was a thicker more complicated tax structure. There is no way a flat or fair tax will ever happen. Congress cannot even agree on whether home interest decution on mortgages should be eliminated. Dimms do NOT believe in lowering rates and GOP is toothless.. I have predicted from day one that “do nothing” Congress will do nothing about taxes as along as the Swamp is still in control. -PT
If this were politically possible (which I doubt) they better lock it in by a Constitutional Amendment. Otherwise you might start out with a rather flat consumption tax and the politicians will fiddle with rates for social engineering and tax the rich purposes and eventually sneak in an income tax too. Amendment to bring back the original Constitution prohibiting taxation of incomes, and further prohibiting any variation in rates by product or producer or consumer….Flat, you MFs. -LM