It is imperative that the Trump administration takes back the narrative of why the American people elected him to the White House in the first place.The two most important messages — policy focuses — that must be regained and emphasized are economic growth and national security. There is a wholehearted, full court press to undermine the Trump administration before it even starts. If this nefarious and egregious level of interference and undermining had been done to the Obama administration in February 2009 by the Republican minority, there would have been such screeching. And to challenge Obama on a trillion-dollar stimulus spending plan is completely different from the purposeful obstructionism of providing the chief executive of our nation a cabinet.
The topic has to be on economic growth by way of tax reform — it cannot just be about a tax cut, but a deliberate plan that will inspire growth in our country. We must pull ourselves out of the anemic GDP growth we’ve seen in the past eight years. It has been the absolute, non-debatable, worst economic recovery post World War II.
The American people are starving to get back to work and have more spending power themselves, than far away in Washington DC. I for one would prefer a bifurcated personal income tax structure based on the $200,000 to $250,000 cut line. Above that cut line, the personal income tax rate would be 20 to 22 percent; below that 15 percent, and there should be only two personal deductions: mortgage interest and charitable contributions. We don’t need more Community Reinvestment Act gimmicks; just promote policies that enable and reward hard working Americans for attaining home ownership. As well, I want to begin dismantling the welfare nanny-state, and the best means to that end is to have Americans caring for Americans through personal benevolence and charity.
Also, our small business owners — LLCs, S-Corps — operate from a personal income rate and we want small businesses to grow and thrive. These lower rates will enable them to hire Americans, and small business is almost 80 percent of our economy. Along with this reduction in personal tax rate for small business, we need to repeal the Obamacare rule that places increased mandates on small businesses that have more than 49 employees. What a stupid and insidious artificial restriction, and we need to remove the Dodd-Frank regulations that punish our small community and mid -range banks, the life blood of our small business growth and development.We also need to cut the world’s highest corporate/business tax rate, presently 35 percent. Here is my recommendation: institute a one time repatriation for the trillions of dollars off American soil at a tax rate between eight to ten percent. The revenues generated would be restricted to infrastructure projects in the Unites States. Afterwards, then Trump’s 15 percent corporate tax rate kicks in…and this needs to be retroactive. No more deductions and exemptions from the 15 percent corporate rate, just a flat tax rate. This is how you boost economic growth in America.
The tax plan must also address the elimination of the death tax, and examine the reductions, or possible further eliminations of capital gains and dividends taxes.
I personally find the proposal of a border adjustment tax disgusting. The last thing needed to be proposed at this time is a new tax. The House and Senate GOP majority must understand a simple maxim: provide the American people economic growth policies — tax and regulatory — and they will grow our economy and generate increase revenues. The border adjustment tax will end up being a tax pushed onto the American consumer. It has the potential to morph into a value added tax (VAT) and that is something we do not need in America. Remember, if Obamacare is properly repealed, that means some 20 taxes repealed, another boost to our economy, along with the almost 14,000 regulations it imposed.However, the real reform needed isn’t what we are hearing talked about in Washington DC — spending, budget, and government reform.
Here is the issue. If any true economic growth, supply-side, free-market tax reforms are enacted, they will promote increased revenue; that has been proven. The problem is the federal government must enact spending reform.There can be no more deficit spending in Washington DC and furthermore, they must resolve themselves to having a balanced budget, not 10 to 20 years from now, but in three to five years.
There’s much talk about increasing our defense spending — well how about smarter spending of our taxpayer dollars at the DoD? That means the reduction of the civilian bureaucracy at the Defense Department, a la the $125 billion of wasteful civilian bureaucratic spending that was uncovered but nothing was done to rectify it — as a matter of fact, the study was “sequestered,” squashed. The real talk coming out of Capitol Hill shouldn’t be about a “border adjustment tax” but rather moving away from baseline budgeting to zero-based budgeting.
How many years has the government waste book been produced, yet not a damn thing has ever been done? So the legislators on Capitol Hill don’t need to talk to us about a new tax measure until they curtail their obscene spending and abhorrent budgeting process.
There are no cuts to spending; only cuts to the INCREASE of spending and that must end. And we need an annual review of every government program. This is not about cruise control, with the increase speed of spending. Someone in the Trump administration should be going line-by-line through every government agency, finding those wasteful programs and targeting them to be cut. That’s how you compliment tax reform, not with a new tax, but with curtailed federal government spending and discipline. But that does not exist.
And finally, we need government reform. Jimmy Carter split out the Department of Health, Education, and Welfare (HEW) into three different government agencies. Obamacare will create 159 new government agencies and bureaucracies. This has to end! Someone also needs to look at government agency reform — simply put, reduction of the size and scope of the federal government — not a new Border Adjustment Tax.
The federal government of the United States is inefficient and ineffective, and it has become a massive behemoth that is onerous and intrusive into the life of the America citizen. So, who in the Trump administration and Capitol Hill is examining government agency reform? A good starting point would be with everything added during the Carter administration. We need to set the constitutional priorities, tasks, and purposes of the federal government. For example, nearly 80 percent of the Department of Agriculture is now feeding programs, not agriculture, and America is hardly an agrarian economy. Do we need two departments of Commerce and Labor? Where can we find combined synergies? Is education a constitutional duty of the federal government — and why can’t we go back to a Department of HEW?
Dump the Border Readjustment Tax mumbo jumbo, and let’s tell the folks in Washington DC to get to work on the real policies of economic growth — tax, regulatory, spending, budget, and government reforms.
The sad thing is that there is a fear of losing power and influence in Washington DC.
Never forget, six of the most lucrative high income counties in America all surround Washington DC. And folks, you want to know what’s bipartisan? It’s the fear of losing power — economic power — to the American people.