Long ago Chief Justice John Marshall warned that taxes have the power to destroy. They can stifle growth, but taxes are even more destructive when we turn them into a moral imperative. The truth is that generosity isn’t a virtue from either side of the tax equation.
Update, November 2, 2017: we see the plan
Today we got our first real look at the GOP tax proposal. The rumors were wrong. Republicans made a wise decision and spared tax-free 401(k) contributions. Not so lucky were the state and local tax deductions.
There are two big money questions swirling around tax code reform. They are the same questions we’ve been asking for decades: who should get the money and why?
Don’t expect answers this year. Just sit back and enjoy the show because this promises to be a good one.
Talk about a bipartisan treasure that will never be. S.354, the RAISE Act is the kind of forward-thinking bill Barack Obama always promised us. Now the job falls to Donald Trump to bring immigrants to this country who will start businesses, create jobs, and jump start new prosperity.
It’s a clever theft of the Republican “Better Way,” that hopeful conservative plan for getting us back on track that promised to swap out Obamacare for something better. That new deal is old business now. It will soon be a part of failed GOP history, replaced by a new urgency to fix the tax code.
Heated disagreement over how Trump and company want to spend our money might be our own fault. Poll numbers show we are pretty fickle about what we expect from government. In a recent Pew Research poll 64% of respondents believe the GOP “is too willing to cut programs.”
Angry thoughts went through my head as I signed my tax check to Illinois. We don’t have a budget. Legalizing marijuana is seriously being considered to bring in more revenue that will be an excuse to spend more. Every taxpaying 401(k) employee in the state owns a share of our enormous public pension debt.