Both halves of Congress are trying to create a more fair tax plan that will promote growth and simplify the code. I am skeptical that anything will get done though as it appears that this Congress is incapable of doing anything significant.
Since Congress will almost certainly fail, I thought I would put my suggestion on the table. As I analyze it, it is probably the most likely plan that I have ever seen to encourage employment growth.
The first step is to not change anything for individuals except to increase the amount of money saved in long-term savings without tax penalty. This should be doubled from its present rate. The government is in the retirement business, and it isn’t doing a sufficient job of managing it. The government needs to get out of the retirement business because the government can rarely do something well. Social Security is a broken plan, and we all know it – we just need to transition out of the retirement business slowly so that we do not screw up the American workers that depend on Social Security.
Don’t let the current partisan bickering on corporate taxes make it seem like both sides of the aisle don’t want this. It is good for America and everyone that understands economics understands this. The issue is that when the Democrats held power, they couldn’t effectively do this because their liberal wing (i.e. the people that do not understand economics) would crucify them in the election booth.
Suddenly, an idea that has been accepted by economists and by policymakers on both sides of the political aisle—that high taxes on business hurt investment, workers, and the economy—is considered “absurd.”
In 2012, President Obama and his advisers proposed lowering the corporate tax rate because it “creates good jobs with good wages for the middle-class folks who work at those businesses.” In 2013, Lawrence Summers, President Clinton’s Treasury secretary and chairman of Mr. Obama’s Economic Council, argued that the tax on corporate profits creates a burden without commensurate revenues for the government and that changing it “is as close to a free lunch as tax reformers will ever get.”
Does anyone remember why President Trump held a press conference on Tuesday?
I almost 100% agree with this editorial by James Freeman. Trump really needs to shut up and just work on stuff that helps people. He has these moments of brilliance but then for every moment of brilliance, he tends to surround it with about 100 moments of pure incompetence.
For the assembled members of President Trump’s economic team who stood behind him at Trump Tower on Tuesday, the first six minutes of his press conference must have seemed like a promising start. Here was the President describing a significant government-created problem and offering the beginning of a sensible solution.
In any case, Tuesday’s press conference became even more interesting over the next 17 minutes. That’s when Mr. Trump took questions from reporters and decided to largely abandon his hopeful message on liberating Americans from red tape. Many of his assembled advisors were suddenly fascinated by various spots on the floor of the Trump Tower lobby as the President offered further analysis of last weekend’s violence in Charlottesville, Virginia.
In general, I question anyone that says something like “my Republican Party”. Really? Is it yours?
I have said for at least a decade that both of the big parties are actually smaller sub-parties that vie for control and typically band together for a common cause. The reality is that the majority trend of both parties was away from the American worker that has
- 2-3 kids,
- tries to remain faithful to his spouse,
- shows up for work on a regular basis but probably doesn’t love his/her job,
- tries to improve his/her home a little every year,
- tries to keep those kids out of jail,
- tries hard to get those kids through school and college,
- enjoys a good movie now and then,
- enjoys time with family and friends more than the movie though,
- and expects to pay his way through life while getting treated fairly by those around him/her.
The new White House chief of staff can improve matters but it’s unlikely to be much of a change. And then there’s the question of how long any improvement will last. We’ve seen brief bouts of normalcy from this president before. Staff changes will only get Mr. Trump so far. The problem with his administration isn’t the administrators.
Source: Trump’s White House Mess