When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676

They call it Tax Reform. A Jobs Bill. That’s what it must be, right? Journalists and commentators are playing the same old game. Argue a proposed piece of legislation on its merits. Time to reset the boundaries in When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676.

Freedom Of Choice

While listeners to The Bob Davis Podcasts always have the freedom to choose what they think is right, I want to introduce the concept of marginal improvement. Legislators on both sides of the political spectrum talk big about ‘reform’. Usually though they make what really are marginal changes. This is especially relevant when we’re talking about the tax code.

The Real Football Game Is Congress

Team Red moves the ball back to the Blue thirty yard line. It’s hailed as a great victory. Team Blue moves the ball back to the Red twenty yard line a few years later. These are what both sides call marginal improvements. Meanwhile, as economist Milton Friedman famously suggested, they keep getting elected by making the tax code more complicated.

Budget Neutrality Isn’t A Thing

Enter a legislative concept called Budget Neutrality. The idea every expenditure must be ‘paid for’ with tax increases, or budget cuts. You think Tax Reform means lower taxes. What they’re really doing is taking away tax deductions and loop holes, and increasing our overall tax. The sad part is, it’s not their money, it’s our money. In When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676.

What Is Real Reform?

If you want real reform. The end to this kind of corruption? Then the power of the federal government to tax our incomes and our property must be permanently eliminated. Should corporations be taxed at all? Do you have property rights if you pay property taxes? How does government pay for the wonderful things both sides wants it to provide? We talk about it in When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676.

Already Socialists

So called conservatives like to argue the merits of capitalism versus socialism. It seems like I’d be on pretty safe ground if I suggested the United States has been collectivist for decades. Our economic system is not so much capitalist as it is a controlled market economy. Our elected Kings and their privy courts control our behavior and our futures with regulation and a tax code so complex, were it to be proposed as a single law in its present form, it would cause a revolution.

(Editor’s Note: While the first actual income tax in the United States was levied during the Civil War, it was later repealed as ‘unconstitutional’. Several attempts were made to establish an income tax through the late 1800’s which were unsuccessful, until the 16th amendment, ratified in 1913.)

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When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676

Podcast 433

Voting Surprises. Elections held on November 3rd, 2015 show the potential for voters to surprise and even shock media, pundits and commentators. Is a Tea-Party Republican victory in the Kentucky Governor’s race a harbinger of surprises to come once people start actually voting in the primaries and caucuses starting February 1st, 2016? Voters in Ohio rejected legalizing Marijuana, Democrats in Virginia lost their bid to gain control of the State Senate, and LGBT rights legislation failed in Houston, Texas. Is this a conservative voting trend? The next actual election is November 21st in Louisiana, where polls say a Democrat is favored to win the bid to replace Republican Governor Bobby Jindal. Is the chattering class underestimating the possibility that conservative voters could show up in large numbers, shifting the country to the right. Same question applies to the grip of establishment republicans on power in the GOP. It is dangerous to believe polls, especially this early in the process. When it comes to real political science, the proof is in the pudding. If there is a trend of angry voters on the right turning out, the punditry is going to be caught flat footed, but the establishment republicans will be shocked. One gets the impression, reporters and commentators covering these elections hear so many stump speeches and have so much red meat thrown at them they get jaded when it comes to the degree of frustration of ordinary voters. The turmoil on the right is a storm brewed up by svengali strategists at the RNC who expected to crown Jeb Bush the nominee. Now Trump, Carson and Cruz threaten the whole house of cards, demanding their own rules for debates or upsetting the carefully constructed plan. Outliers Trump and Sanders on the left are shaking up the status quo and challenging the idea that suzerains in Washington get to decide who the nominee will be on either side. In the real news, things don’t seem to be going so well and the commentariat continues to write tripe. The GDP only ‘grew’ 1.5 percent, but don’t worry growth is expected when consumers, ‘spending the savings from lower gas prices like a tax cut’ finally kicks in. A new study done by Democrat Operatives that says Mergers and Acquisitions are causing ‘inequality’. Is this true? Meanwhile Congressional Republicans lift the debt ceiling and federal spending jumped by 338 billion dollars. Maybe they should be talking about cutting spending rather than cutting taxes? Sponsored by Pride of Homes and Luke Team Real Estate and Ryan Plumbing and Heating of Saint Paul