Ok, so now we’re moving onto tax reform — yeah, right. I find it really hard to believe that the folks who couldn’t contend with repealing Obamacare’s 20 taxes are now supposed to fix and reform our tax code. What’s also truly hilarious to me is that the progressive socialists of the Democrat Party are talking about a “better deal” but espousing the same ol’ tired talking points.
What’s my major concern? The financial markets and the economy of the United States expect a pro-growth tax policy to be passed and signed into law by President Trump. They also expect this to be retroactive to January 1, 2017. A failure to make that happen could mean a very detrimental reversal of what’s been record reporting from our economic indices.
However, I have to give it to the leftists, led by Senator Chuck Schumer; they have some chutzpah. As reported by ABC News, “Senate Democrats and independents said Tuesday that upcoming legislation to rewrite the nation’s tax code should ensure the middle class doesn’t pay more and the top 1 percent doesn’t pay less.
In a letter to Republican leaders, including President Donald Trump, 45 of the 48 Senate Democratic caucus members said they won’t support any upcoming GOP effort to overhaul the tax system that delivers cuts to the top 1 percent or adds to the government’s $20 trillion debt.
Republicans controlling Congress are gearing up to advance their tax measure this fall, promising to lower rates on businesses and individuals, while clearing out many tax breaks and deductions. The letter says that Democrats hope to work with Republicans to promote investment and modernize the outdated tax code, but the terms laid out by Democrats are unlikely to tempt Republicans, who are planning to use a filibuster-proof Senate procedure to advance the legislation without their help.
“Any tax reform effort should not benefit the wealthiest individuals, who have already seen outsized benefits from recent economic gains,” said the letter, authored by Minority Leader Chuck Schumer, D-N.Y., and others and provided to the media. “Tax reform cannot be a cover story for delivering tax cuts to the wealthiest.”
Blah, blah, blah…same ol’ wealth redistribution, politics of envy, and class warfare-based ideological approach to economics. Now, just ask yourself, how the heck has that worked out in Venezuela? As a matter of fact, have y’all heard anything from all those progressive socialists of the Democrat Party and the entertainment elites who were praising Hugo Chavez and his socialist approach in that once economical thriving Latin American nation? I know, crickets, and to think, not a peep from Bernie Sanders, Sean Penn, Oliver Stone — any of them — on the shenanigans, violence, abductions and institution of “truth squads” by the former bus driver, Venezuelan President Nicolas Maduro.
But, back to ol’ Chuckie.
Under Obamanomics, we saw the vaunted leftist “middle class” — I prefer the term “middle income Americans” — being crushed. They lost job opportunities and their wages stagnated, if not flatly decreased. We’ve seen middle income Americans struggle to provide themselves with affordable health insurance — you remember, they were supposed to have $2500 of savings. Many are working 2-3 jobs, part time of course, due to failed liberal progressive policies that increased taxation and regulation.
And last time I checked, the top wage earners in America paid some 39 percent of federal taxes. The leftists such as Chuckie Schumer will tell us that “trickle down” economics is a fallacy. Well, I tend to believe it’s far better than “trickle up poverty,” which is what the left promotes and advocates, the expansion of a welfare nanny-state.
The whole purpose is for more to be dependent upon them, the government, which means electoral servitude and patronage. Let’s be honest. To my beloved detractors referring to themselves as “liberals:” you’re not true, classical liberals who embrace the notion of natural rights of life, liberty, and property. You, leftists, don’t want individual success and economic empowerment. Instead you prefer economic enslavement, and you find that in the tax code you can use as a weapon for legalized plunder.
I think Senator Schumer fails to understand he doesn’t have the authority to determine how much money American citizens get to keep. Therein lies the problem with a federal government armed with a16th Amendment that taxes production…as if you’re to be punished for working hard and achieving. That should be encouraged with pro-growth economic policies, not discouraged or assailed. This is why we need a GOP that will philosophically stand up to these idiotic charlatans and call them out as hypocrites.
Schumer claims he doesn’t support anything that adds to the $20 trillion debt or increase our deficits? Where was this chucklehead during the past eight years of Barack Obama? Our debt went from $10.67 trillion under Obama to the current levels. As well, during the first four years of Obama we saw record deficits ranging from $1 trillion to $1.4 trillion — did you hear Schumer say a freaking word? Unemployment rose, regardless of the manipulation of the jobs report, more Americans were in poverty and on food stamps. Did Schumer say a word about the failure of Obama’s economic policies? So, I will just say it: I would take Schumer’s letter and place it in the bathroom next to the toilet paper; same usage.
Here’s what needs to happen:
1. Implement a one-time repatriation of the corporate profits in the trillions overseas at an 8-10 percent tax rate, retroactive to January 1, 2017. Use the tax revenue generated to fund major infrastructure projects.
2. Make the corporate/business tax rate permanently flat at 15 percent, effective January 1, 2018. Eliminate all deductions and exemptions, and I mean none, just a flat tax rate of 15 percent.
3. Reduce the progressive tax brackets from six down to two, based on a $250,000 income level for a family, $200,000 for an individual — above those income levels, 23 percent, below, 12 percent, and only keep two personal deductions — mortgage interest and charitable contributions. No more gimmicks like the Community Reinvestment Act for home ownership. It’s not a right, just have a policy to encourage it. Small businesses, Sub-chapter S-Corporations operate from a personal income level…this will help to boost their growth. And everyone must participate in the tax system; no more using it as a weapon against some.
4. Eliminate the Death Tax.
5. Take Capital Gains and Dividend taxes back to Reagan-era levels.
6. Repeal those insidious Obamacare taxes — such as Medical device, tanning, and others.
7. Allow those individuals termed the “working poor” to be able to claim health insurance on their taxes, and expand the use of Health Savings Accounts, which Obamacare taxes.
8. Forget the concept of “deficit-neutral” — focus on “revenue neutral.” The former is the gimmick decried by those in Washington DC in order to keep up their absurd spending levels. And don’t care what the CBO says since they do not conduct dynamic economic analysis.
9. Institute hard spending cuts in Washington DC…not the gimmick of baseline budgeting that only cuts the rate of increase for spending, but still increases spending. Washington DC needs to go to zero-based budgeting, which is what we all do to manage our households. That means we need a balanced budget amendment for Washington DC, just like the states have.
10. Conduct a major restructuring of the federal government. For example, go back to the pre-1978 HEW structure, instead of three separate government agencies such as Housing and Urban Development, Education, and Health and Human Services. Restructure the Department of Agriculture whose budget is mainly low-income food programs; we are hardly an agrarian-based economy. Why do we need a Department of Labor and a Department of Commerce? What about a single Department of Economic Activity? I think you get my point.
There, ten points, and I would love to debate ANYONE on this ten-point tax reform/economic growth plan.
So, why do we have the House Ways and Means Committee on vacation, on “recess?” As Nike says, “Just Do It.”
[Learn more about Allen West’s vision for this nation in his book Guardian of the Republic: An American Ronin’s Journey to Faith, Family and Freedom]