Congressional Republicans with special interest agendas, join Democrats in opposition to the Trump tax plan. Backroom deals and sneaky tactics are at play to keep the status quo. The term “draining the swamp”, has never been better illustrated.
Most in Congress have never known a professional life outside of politics. President-elect Trump knows what businesses needs to grow. These underhanded political hacks are only interested in lining their own pockets. President-elect Donald Trump said Friday that one of the key parts of the House Republicans’ corporate-tax plan that would tax imports and exempt exports was “too complicated.”
“Anytime I hear border adjustment, I don’t love it,”. Because usually it means we’re going to get adjusted into a bad deal. That’s what happens.”
The border adjustment tax plan is one of the most controversial parts of the House Republicans’ tax plan. The measure is reportedly part of a broader plan to encourage companies to locate jobs and production in the U.S.
“If you take out the border adjustment, you have to really think about an entirely different reform,” Kyle Pomerleau, director of federal projects at the Tax Foundation, a conservative leaning group in Washington, told the paper.
Foreign companies that import goods to the U.S. would have to pay the tax, increasing the cost of imports. Exporters love the idea. But importers, including big retailers and consumer electronics firms, say it could lead to steep price increases on consumer goods. The lobbying has already begun.
Koch Industries Inc., said last month that the measure could be “devastating” for the economy. The Journal, citing independent analyses, said the tax plan would lead the dollar to appreciate, which would offset the cost for retailers.
Under current law, the United States taxes the profits of U.S.-based companies, even if the money is made overseas. However, taxes on foreign income are deferred until a company either reinvests the profits in the U.S. or distributes them to shareholders.
Critics say the system encourages U.S.-based corporations to invest profits overseas or, more dramatically, to shift operations and jobs abroad to avoid U.S. taxes. Many special interest groups are actively lobbying Congressional members want to keep it this way.
House Republicans want to scrap America’s worldwide tax system and replace it with a tax that is based on where a firm’s products are consumed, rather than where they are produced. To keep jobs in the U.S., Trump knows that manufacturing operations need to be in this county.
Trump knows that big government must get out of the way of business. The members of Congress opposing Trump’s plan, want it to remain complicated for a reason. It’s called smoke and mirrors. One of the biggest potential changes for taxpayers would be Trump’s proposal to consolidate tax brackets. Instead of the current seven tax rates, there would be only three: 12 percent, 25 percent and 33 percent:
Trump also understands that high taxes on the American people stymies’ growth. We’ve been taxed to the bone, to fund Obama’s entitlement agenda. If President-elect Donald Trump’s tax plan becomes law, the rules for individual taxpayers will change dramatically. The biggest change with the Trump plan would be a reduction in the top tax bracket, from 39.6 percent to 33 percent — a 6.6-point cut.
This is what really creates jobs and boosts the economy. Reducing taxes, increases spending. It’s as simple as that.
Donald Trump’s tax plan follows in the footsteps of Ronald Reagan. The passage of the Reagan tax cut, the Economic Recovery Tax Act, passed in August 1981, was a watershed event in the history of federal taxation. The bill also included several lesser-known reforms that have had a dramatic and lasting impact on the Internal Revenue Code indexation of tax rates to end “bracket creep,” improved tax treatment of depreciation and lease payments, reformed tax treatment of overseas income, and more.
The Reagan tax plan is sometimes described as a short-run policy that was designed to bump the U.S. economy out of recession. But fully one-fourth of the cuts were geared toward long-run economic growth, through provisions aimed at boosting savings and capital accumulation. It worked.
When Reagan took office, he inherited an economic disaster created by Democratic President, Jimmy Carter. The country was in recession, inflation was through the roof, and unemployment was at an all-time high. Economists say that Ronald Reagan steered the country through the second longest peacetime economic expansion in U.S. history.
When Congressional Democrats tried to stall his legislation, he went to the airways and straight to the American people. The obstructionists backed down. Does that sound familiar?
Donald Trump’s tax cut would be even larger than Ronald Reagan’s 1981 tax cut. Trump’s latest revision of his tax plan is estimated to cost between $4.4 trillion and $5.9 trillion, according to the Tax Foundation, or an annual average of $440 billion annually.
Trump understands what it will take to kick start the economy. He’s been a mover and shaker in it, all his adult life. The liberal leftists believe in “the redistribution of wealth.” This is otherwise known as socialism. That’s never worked in any part of the world and especially can’t work here.
There’s a road map for economic growth and national security. Donald Trump knows how to read it. He knows the right direction.
He also knows, like Reagan, how to reach the American people with his message. The technology is better now, so the communication will be more far reaching.
The obstructionists in Congress best get out of the way, or get run over. In draining the swamp, Trump will expose any legislator that’s controlled by special interests.