(National Sentinel) Tax reform: After being stung by the Republican majority’s refusal to repeal and replace Obamacare, many politicos began to believe that President Donald J. Trump would never get any of his major agenda items passed.
That included a major reform and overhaul of the tax code Trump promised during the campaign, a package featuring very large cuts in corporate tax rates which he says will spur tremendous re-investment in the U.S., exploding economic and job growth.
But now a number of economists believe that Trump will get tax reform, most probably because of its perceived benefits to the donor class. As reported by Bloomberg News:
The pros who make their living forecasting the economy overwhelmingly expect President Donald Trump and his fellow Republicans to push through tax cuts in time for next year’s congressional elections. They just don’t think that the reductions will do all that much to help the economy in 2018.
That’s the message from the latest Bloomberg monthly poll of economists, taken Aug. 4 to Aug. 9. Of 38 respondents, 29 expect Congress to pass tax-cut legislation by November 2018.
The same economists did not believe that tax reform would come quickly enough to add much to economic growth next year (maybe .2 percent). But what comes after those cuts, if the Reagan model is any indication, could be nothing less than an economic tsunami.
Then again, if Republicans have to bypass Democratic opposition using budget reconciliation, the cuts will have to have an expiration date if they are seen to add to the deficit, Bloomberg noted.
Still, the site reported:
Texas Representative Kevin Brady, the Republican chairman of the House Ways and Means Committee, said Friday that Congress is on track to deliver a tax bill to Trump in 2017. Brady, in a Bloomberg Television interview, acknowledged the goal is “aggressive” but said there’s “urgency” in terms of the economy and U.S. competitiveness.
Tax cuts and making American corporations more competitive are core Republican issues, or at least they used to be. The era of Trump has turned traditional politics on its head, however, and some members of the GOP are much more interesting in blocking the president than they are in adhering to their political principles.
But here’s what should also offend Americans — of all political persuasions.
The bedrock of Trump’s tax overhaul is simplification of a system that has become, over the decades, arcane, confusing and political tool for lawmakers and the federal government to use in picking winners and losers. The tax code is designed to reward some at the expense of others. And far too many lawmakers don’t want to give up that power.
Proposals ranging from the flat tax to the Fair Tax would make doing and paying our taxes much easier, less prone to error and far less expensive for both American citizens and U.S. corporations.
The fact that too few lawmakers really want that, as evidenced by the difficulty Trump will have in passing substantial tax reform, is the real scandal here.
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