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AJC.com (Opinion): The deep, deep cynicism of "tax reform"


Fergasun

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AJC (Opinion): The deep, deep cynicism of "tax reform"

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In a speech in Missouri later today, President Trump will attempt to relaunch his administration’s tax-reform crusade. If you believe what he says, his plan will be the bestest, biggest, boldest tax reform ever devised in the whole history of man.  It will be beautiful; it will be huge, that I can tell you.  However, once you peer inside that nicely wrapped giftbox — when you peel off the gilt-edged rhetoric and the beautifully tied bow — what do you find inside?  You find nothing. The box is empty.

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So let’s explore the two basic premises underlying that mission statement.  PREMISE No. 1: American companies are suffering under a “crushing tax burden” that makes it impossible to turn a profit and compete internationally.  Is that true?  [Graphic Omitted]  ee, look at that. Contrary to the rhetoric, corporate profits AFTER TAXES are actually at all-time record highs. In the past 15 years, while median household incomes have declined, corporate profits AFTER TAXES have more than tripled.

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PREMISE No. 2: Because of these allegedly crippling tax burdens, American companies have been unwilling or unable to hire. Lifting that burden will lead to more investment and the creation of millions more jobs, and higher-paying jobs as well.

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Then there’s the premise hidden within the premise: If corporate after-tax profits increase still further, will those additional profits be invested into job creation and higher pay, as Trump and others claim, or will those billions be used to further benefit the investing class, compounding the problem of income inequity?  Based on history, they will be used to further benefit the already wealthy.

 

I completely agree with this opinion piece -- just because someone says something doesn't mean they really will do it.  
 

 

 

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I didn't retain much from my college econ classes, so I would really like to see a discussion of this damning analysis.  On its face I believe it, in part because I don't trust a thing Donald Trump utters and in part because of the people he's surrounded himself with. 

 

 

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2 minutes ago, Dan T. said:

I didn't retain much from my college econ classes, so I would really like to see a discussion of this damning analysis.  On its face I believe it, in part because I don't trust a thing Donald Trump utters and in part because of the people he's surrounded himself with. 

 

 

Good luck with that dream.  We'll hear nothing but "tax breaks for the rich" vs "businesses need tax breaks to hire more people" for the next 6 months.

 

I agree with you though.  Our nation needs to have a serious conversation about how much people and businesses should have to pay, what that should pay for, and what things can be excluded (ie loopholes) before taxing.

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Real reform would be something along the lines of 86 - lowering rates while slashing exemptions.

Our corporate tax rate is one of the highest in the world, but the number of loopholes we've created is unparalleled. This creates all kinds of distortions and inefficiencies, usually benefitting large corporations with generous lobbying organizations at the expense of smaller companies....but it's where our elected officials make their bread and butter. The tax code is a gold mine for congress, and the most pampered industry is...real estate. How likely is it that the Emolumenter in Chief is gonna reform that? One group unfairly benefitting from tax breaks are LLCs, which make up the bulk Kushner's wealth, and again, much of Tangerine Turd's.

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3 minutes ago, TryTheBeal! said:

We should tax the churches and give some relief to middle class.  It would be a paradise.

 

 

I agree.  I'm fine with giving churches a tax break ONLY for expenses that get directly to helping the community like the cost of the food kitchen for feeding the poor.  Tax them for everything else.

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1 hour ago, Kilmer17 said:

Good luck with that dream.  We'll hear nothing but "tax breaks for the rich" vs "businesses need tax breaks to hire more people" for the next 6 months.

 

I agree with you though.  Our nation needs to have a serious conversation about how much people and businesses should have to pay, what that should pay for, and what things can be excluded (ie loopholes) before taxing.

When the GOP starts in with their tax "reform" legislation, I'd love to see the so-called obstructionist Dems offer them an olive branch - a simplified flat tax that GOP'ers have been whining about forever. The poison pill would be a no-exemptions clause. Abolish exemptions and write offs for pretty much everything. Corporations and the wealthy would kill them if they ever went along with it. What, you mean you want to keep those "confiscatory" corporate/individual tax rates all of a sudden? Now why, pray tell, might that be the case? ;)

 

In any case, I can't wait to get my next $200 tax cut and watch the GOP revert to saying debt/deficits don't matter again.

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2 hours ago, Dan T. said:

I didn't retain much from my college econ classes, so I would really like to see a discussion of this damning analysis.  On its face I believe it, in part because I don't trust a thing Donald Trump utters and in part because of the people he's surrounded himself with. 

 

 

Click on the link which has the graph of corporate profits AFTER TAX going up since 2000.

 

If they are making more AFTER TAX why is middle class not rising proportionally?

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38 minutes ago, Fergasun said:

Click on the link which has the graph of corporate profits AFTER TAX going up since 2000.

 

If they are making more AFTER TAX why is middle class not rising proportionally?

 

I read the article and saw the charts.  As I said, on its face it's pretty damning. 

 

Trump's rhetoric rarely matches reality.  So I'm highly skeptical of whatever he has his Goldman Sachs pals planning.

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