In watching this car wreck of a Presidential campaign, taxes have become a focal point. We know that Mrs. Clinton has no boundaries in the lust for high income taxes. Since about fifty percent of all taxpayers filers do not pay any income taxes, that means the rest of us smucks are in for a tax increase to be redistributed to those that pay no taxes or for other not so important spending programs.
Mr. Trump says he will cut taxes to spur economic growth. I have seen so many of his plans and revisions thereto; I am not sure exactly what they are in any precise detail and probably neither does he. However, he does seem to grasp the correlation between taxes and economic growth.
These plans-no matter which one a person favors- are portrayed as happening from day one. That is, whatever the candidate says will be the law of the land on Inauguration Day.
Hold on there! The last time I check the Congress enacted the tax statutes in this county. True, the Obama Administration makes up things are they go along (see Section 385 regulations) but by and large, Congress sets the rates, the structure, the preferences, the exemptions, the credits and the exclusions. Always has.
There is no question the “Code” needs an overhaul. Complexed, unfair, unbalanced, burdensome, inefficient, bureaucratic, Byzantine, out-of-date are just a few words to come to mind. The Obama administration never was serious about participating in any tax reform of any consequences. Their annual budget contains the same old tired ideas with the overall manta of raising more taxes. Any taxes. This attitude wasted lots of time, squandered opportunity and has been a disservice to the country.
All that said, it is important to have input from the Treasury Department in enacting major tax reform. There is an expertise there and in some cases, Treasury can balance sometimes over zealous lawmakers. However, it is a real waste to overanalyze the proposals of the candidates and nitpick their so-called “plans”. You already know –Clinton more taxes, Trump probably less taxes. I am more interested in what the Chairmen of the tax writing committee think and say, what the leadership (like Speaker Ryan) has to offer than the fuzzy details from these most unqualified people.
So, keep you eye on the Hill and let the flotsam float away.