The GOP once thought, and still thinks, that tax cuts no longer have to be paid for with offsets. Of course, since the could not get changes to the Budget Act, the Senate can and probably has blocked any such nonsense. Dynamic scoring is such nonsense and any Freshman Economics student can come up with mulitple ways to analyze dynamic scoring and absolutely none of them support the idea of cutting taxes and not running a deficit to maintain growth. I am sure that the corporate community would love cutting rates. Some corporations have so many deductions that their rates are essentially low – but many others do not. Meanwhile, sole proprietorships often book their taxes at a much lowe rate – even though they may compete as either individuals or groups. Rationality is necessary – but it may involve a VAT (or two). That the college tax avoidable accounts favor the rich is no shock to anyone, including those of us who feel guilty about not saving for college in this way. Of course, this is why we have Pell Grants – and sadly – massive college loans. As I said in the next day’s remarks, employers should have to pay college costs after Sophomore year – with states covering tuition for the two years before that. Higher, hopefully progressive, taxes will indeed help some states, although I am not so sure that rates are so progressive that it would be good for the poor and working class. These proposals probably need work to make sure they take money out of savings and put more in growth (through spending – which helps people very much at the state level. The annual rituals in trade policy and budget policy are occuring this week. I am not sure there is much to see unless the CBO casts its support behind Obama’s budget. As for Trade, this could be such a disaster for workers on both sides of the Pacific – although their masters will get a big kick in their income at a tax rate that is still too low. I hardly ever use online forms, but may this year due to a Health Insurance Penalty and dealing with a bankruptcy. This may be a bit beyond even my expertise in tax law. I might even go to Block. Sad. - See more at: taxvox.taxpolicycenter.org/2015/01/26/got-growth/#comment-650427
Posted on: Tue, 27 Jan 2015 07:37:00 +0000
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