Posted on 11/18/2016 12:25:12 PM PST by Kaslin
It has been 30 years since the tax code was last reformed. By signing the Tax Reform Act of 1986, President Ronald Reagan reduced income tax rates for every American family and business, simplified the code, and encouraged strong economic growth.
Yet today, the code is far more complex than it has ever been, growth remains stagnant, and businesses are unable to compete against foreign competitors. Regardless of who occupies the White House next year, tax reform must be on the agenda.
Tax reform should not be viewed as a partisan issue. Both the right and the left agreed in 1986 that the tax code was out of date and out of control. The code was plagued with 14 different income tax brackets. The top rate for individuals and businesses was close to 50 percent.
The 1986 tax reform simplified the code by replacing the 14 tax brackets with two and reducing the top income tax rate to 28 percent. The corporate tax was also lowered to a 34 percent, incentivizing both innovation and competitiveness.
These reforms spurred economic growth. In the years following tax reform average GDP growth rose to 4.2 percent. Today, our economy is stuck at a stagnant 2 percent and tax reform could again economic growth and reduce the deficit. The Congressional Budget office estimates that every 0.1 percent of higher economic growth would create an additional $286 billion in federal revenue. Tax reform, if done in a pro-growth way, would ensure that our average growth would increase, boosting the economy.
In 1986, a major driving force for reform was tax simplification. At more than 26,000 pages long, the tax code was far too complex. Since then, the size of the code has expanded to 74,000 pages, close to three times as long as it was in 1986.
The top income tax rate has also increased to 39.6 percent, and the number of brackets to seven. Similarly, the corporate tax rate has remained stagnant even as other countries have lowered their rates. The U.S. is one of only two countries (with Chile) to have a higher corporate rate than it did in 2000. Today, our high rate makes it difficult, if not impossible for our businesses to compete with much lower rates like Canada (26.3 percent), the United Kingdom (20 percent), and Ireland (12.5 percent).
The length and complexity of the tax code make it difficult for Americans to complete their taxes without having to hire a costly professional. A study released by the Tax Foundation estimated that Americans will spend $409 billion and 8.9 billion hours completing their taxes this year.
This 1986 tax reform effort was bipartisan with members from both sides of the aisle in Congress supporting the legislation. But today, this bipartisanship is nowhere to be found.
Thankfully, we dodged the Hillary Clinton tax hike bullet. Throughout her campaign, Hillary called for a slew of tax increases including a payroll tax, a capital gains tax hike, and a hefty increase in the death tax bringing it to 65 percent. Hillary did not offer any income tax rate reduction for any American. Instead, Hillary’s tax plan would have raised taxes on the American people by over $1,000,000,000,000 over the next 10 years, based on the numbers given by her own campaign. Needless to say a Clinton presidency would have made the code more complex
The Trump victory has opened the door wide open for tax reform. The House Republican “Better Way” tax reform Blueprint, and President-elect Donald Trump both propose simplifying and updating the code and reducing rates for all Americans. These plans would also help to keep American businesses competitive decreasing business taxes for both corporations and businesses organized as pass through entities. They also call for repeal of the Death Tax, the AMT, and many distorting credits and deductions.
Since 1986 the tax code has become more complex, burdensome, and uncompetitive. Change is needed and it is incumbent on President-elect Donald Trump to make pro-growth tax reform a priority, not add unnecessary complexity and a greater tax burden to our archaic code. Thirty years has been too long to wait for reform, we cannot afford to wait any longer.
Reduction in size of the federal tax code! A starting goal should be a 50% reduction.
Cut taxes and KEEP THEM CUT by putting the feds back into its constitutional cage and bound again by its constitutional chain.
I think Trump should seriously look at the flat tax that Steve Forbes proposed 20 years ago. If we had a flat tax like Forbes’ proposal, DJIA 30,000 may not be a crazy suggestion because the USA would become one of the world’s friendliest countries to actually run a business.
Gross Income______
x
0.08
pay this amount ________
1. Eliminate ALL corporate tax.
1a. Eliminate ALL depletion allowances and depreciation allowances.
2. Eliminate ALL current IRS regulations.
3. Set the individual tax rate at 10% regardless of income.
3a. Perquisites at taxed at 10% of cost.
3b. Withhold at the rate of 11%, to get a refund you have to file taxes, but there is no legal imperative to file.
4. Tax ALL money coming into the country at 0% (yes, ZERO%).
5. Tax ALL money leaving the country at 10%.
tax reform is a good one.
personally, i want our national voting system dragged into the 21st century
if we can do it, the dead will no longer vote and voters will only receive a single vote (in their home district).
Right on
Way too much goes to folks who won't work. They consider welfare an ENTITLEMENT. We are ONLY "entitled" to live and to die. That's it.
Isn’t that going to be difficult, if there is a one trillion dollar stimulus proposed? Has dt changed his stimulus plan? I don’t care what initial is after your name, one trillion in “infrastructure” is more debt, and always a stimulus.... I am always opposed. Infrastructure should b handled at the state level. Flat not VAT, for all.
Reinstating is fine. How about ENFORCING it?
Glad you asked.
Reinstating of course involves enforcement, but that is a key issue about which so many are so confused.
The first question is to whom does the Constitution BELONG? Answer: the states and the people.
The next question is to whom is the Constitution AIMED? Answer: mostly the Federal government.
Since the Constitution is essentially an anti-government Rule of Law (it creates a limited central government with delegated, enumerated, and limited powers), the feds are inclined to hate the Constitution because the Constitution is not in the government’s interests of increasing power and more of your money.
So the guardians and enforcers of the Constitution must start with the states and the people. The states’ job is to enforce the Constitution by rejecting and nullifying unconstitutional federal acts - a bottoms-up enforcement. The peoples’ job is to elect non-career-politician statesmen who will enforce the Constitution at the federal level - a top-down enforcement.
The Constitution does NOT empower the feds with sweeping powers to enforce the Constitution against the states or the people. That is a major perversion of the Constitution for the last 100 years.
Up to now, the states, sovereign outside of Constitutional constrains as confirmed in the Ninth and Tenth Amendments, and the people, who elect statesmen, VERIFY those elected, and throw out corrupt politicians, have failed in their right and duty to enforce the Constitution. This of course MUST change for America to once again experience a rebirth of freedom as a Free Constitutional Republic
Americans must answer the question posed some 250 years ago: "Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery?" - Patrick Henry. (The mostly unconstitutional federal government exercises tyranny, "chains and slavery" on a daily basis.)
Henry's answer: "Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!" Our answer must be the same if we are to reinstate freedom and our Free Constitutional Republic.
To remain free, we must value freedom above all else including our own lives or sooner or later, the Leftist tyrants will own our lives.
To truly remain free we must surrender ourselves to God. He gave us life and we ought to show our gratitude.
Yes, but political freedom and personal/spiritual freedom are not mutually exclusive. Political freedom is necessary but not sufficient. Personal/spiritual freedom is indispensable.
To remain politically free, we must value freedom above all else including our own lives or sooner or later, the Leftist tyrants will own our lives.
However, in order to sustain our political freedom from tyranny, we and our posterity MUST put our trust in God and not in man or his government. In order to sustain political freedom we must embrace personal/spiritual freedom in knowing and trusting God and His Son, Jesus Christ.
The story of the 20th Century and beyond is the story of tyranny given a boost because men ceased trusting in God and began trusting in man and his government. In these last few decades, we must turn back to God in order to overturn tyranny and sustain our political freedoms.
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