Real Tax Reform(it will not happen)

Fresh off what Donnie calls the most successful first six months in presidential history, Donnie will turn to tax reform. It is an odds on proposition that he will not know or care what would be in the legislation as long as it is entitled Tax Reform and maybe has his name in the title. That means it is likely to be the sort of taxing budgetary Fantasy that Paul Ryan as offered in the past. That consists of tax cuts for people and entities that already have more money than they know what to do with coupled with cuts in programs needed by the disadvantaged in our society. Probably with the help of Mick Mulvaney, that will be some" dynamic scoring" Love the kind that nonpartisan economists have consistently called" implausible" to  purport to make it revenue neutral and thus needing only 50 votes.

The current situation in the southeastern United States is going to be a real budget buster and make Ryan's fantasies even more difficult. We will see legislators from Texas, including Ted Cruz, who voted against relief in New York and New Jersey for the victims of Sandy urging the preparations for Texas and maybe Louisiana. In the past, people like then Congressman Mike Pence and congressman Mick Mulvaney wanted budget cuts elsewhere to offset any relief funds. If that happens this time, guess who will bear the brunt of it. The only thing certain is that Ryan and Mulvaney Will be turning somersaults in the dynamic scoring exercise.

We do need tax law changes and I have a few modest proposals. First, raise the tax level on passive income including capital gains to the same level as those who work for a living pay. Also make that revenues subject to the Medicare tax. Second, raise the tax levels incrementally for those having taxable incomes of $250,000 and more up to a maximum of 70%. Third, eliminate unjustifiable provisions in the tax code that favor selected industries or individuals. Fourth, pass a provision allowing repatriation of funds residing overseas by US corporations at a favorable rate but require those entities to use those monies for capital expansion and/or wage increases for their employees and not to buy back stock or engage in acquisitions. Use the tax revenue received by the Federal government from this to finance infrastructure projects.

The need for the federal government to assist in problems such as those being experienced In Texas and Louisiana serve to demonstrate that the government needs more tax revenue, not less. In a society as complex and large as ours, it should be obvious that more functions, such as healthcare, need to be financed at a national level. The democrats need to carry this message and point out to the former Democrat voters in Pennsylvania Ohio Wisconsin and Michigan that they have been duped and they better change their allegiance.