The Tax Reform the GOP wants are undoing the tax rate increases allowed by the ATRA, the HI taxes on non-wage income in the ACA and lowering the top corporate tax rate to 25%, with a requirement that each of these be "dynamically scored" to avoid the charge that they increase the debt - which is totally bogus. Indeed, we are speeding up the recovery BECAUSE taxes on the savings sector went up, thereby putting more money into the economy and limiting the need for private sector investment in government bonds - making it more available for stocks, private bonds, municipal bonds, etc. Real tax reform would be a tool to increase the child tax credit, thus encouraging larger family sizes (even adoption) - which would help avoid the demographic time bomb we are facing. It would also be worthy to stop most households from filing by shifting income taxes for most families and payroll taxes to a consumption tax (which also limits the need for a Buffett Rule because the owners of the firm would ultimately take a hit on their investments and finally pay more than the workers). Anything short of these reforms is not worth doing - and I doubt the GOP will propose them. Indeed, the Democrats are as unlikely to do so.
Posted on: Sat, 28 Sep 2013 02:35:16 +0000
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