The Tax Mess Solved

The idea is brilliant, increase the standard deduction, and get rid of all the itemized deductions. I recall a conversation I had with a friend about how much I paid in taxes, I wasn’t smart enough to figure out all the deductions, so I was foolish to have paid more. If everyone had the same deduction, and I paid more in taxes, it would mean that I had more to spend. End of conversation.

Of course it will never happen. The hundreds of pages of tax code hide a Thousand sacred cows. Cows that will never be allowed to go to slaughter.

Following the money, the only thing that causes more discussion on taxes is opinions on benefits. Yes, every deduction is a special interest benefit. I do not believe that we will have comprehensive tax reform. The darkest of money in the deepest of pockets will assure failure. So I disagree with Wall Street expectation of a tax bill. Maybe I will be wrong?

A middle class tax cut is also smart. They will by more things, and create more jobs. The rich have already made a killing in the market, and are getting richer. They do not need a tax cut.

A business tax cut is also smart. If we were to make flat screen TV’s in this country we would have more jobs and fewer people in poverty. Quite possibly if we were to produce everything we need here, we would be less interested in military intervention elsewhere. The latter is just my theory. The party line is more jobs, less crime. Probably not that far from the truth.

The above is President Trump’s vision as I see it. The New York Times says it is a tax increase on the middle class to benefit the rich. That may be true after the professional politicians work their magic on the bill.

On final thing the president and others forget. As Warren Buffett says, increase the capital gains tax. Then work the tables and balance the budget. It can’t be that hard.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s