Anytime you change the tax code in this country, you’re going to split the country. That’s because somebody’s ox is going to get gored. Anything you take away is going to hurt somebody. So, if you lower the income tax rate from 25% to 15%, the government has less money to redistribute and the poor end up getting less of it. If you decide to take away mortgage interest deductions, the real estate industry comes unglued (and trust me…that’s one industry that doesn’t need a lot of pushing to come unglued!).
Want to upset the religious community? Simple. Just take away the deduction for charitable giving. Want to upset the medical community? Take away the medical deduction. Want to upset people with large families? Take away the child care credit. The oxen waiting to be gored are endless.
So, Donald Trump unveiled a bullet-point plan on where he’s thinking taxes should be. On the surface, pretty much everybody gets a tax break, but businesses get a larger tax break than everybody else. That should surprise no one. Trump campaigned hard on that. If you are just now getting angry at that, I have to ask which cave you’ve been living in over the last year. He is going to take away the deduction for property taxes and state taxes. That is going to upset people specifically in the northeast who pay extremely high state and property taxes. Does he care about that? Nope. They didn’t vote for him anyway. Go ahead and gore their ox!
Liberals are going to scream that this is a deficit booster because it’s not revenue neutral. Actually we don’t know that. When you lower income tax rates, you actually get more in taxes because the economy is spurred on. Now, there is a fulcrum at some point where you can’t pay the bills of the government (actually if we cut all of the crappy programs out of the budget that don’t belong there in the first place we’d be MUCH farther ahead of the game!). And don’t forget, because of your previous president, there are about 48% of us now that pay no income taxes at all. Yeah, you heard right. About half the country doesn’t pay anything, and actually over half of those people get a tax refund thanks to tax credits. So, it’s like a handout from Uncle Sam that they get because they are in the bottom half of income earners…sort of a bonus for not achieving.
Overall, the tax changes Trump wants to make are somewhat appealing. The death tax goes away, there are tax cuts for those of us paying them, and that means that there should also be cuts to the programs that are costing us billions that government really shouldn’t be paying for. Folks, we have to FINALLY realize that income taxes should not be a means to redistribute wealth. It should be a way to pay for government’s bills…period. Any country that thinks otherwise is doomed to eventually fail, and frankly, we’re getting pretty close to that!
Carry on world…you’re dismissed!