According to Kevin Glass:
Over the last two years, a groundswell of movement has happened behind the scenes on Capitol Hill. Rep. Dave Camp (R-Mich.) has been working to convince his colleagues of the need for tax reform. Recently, Max Baucus has begun to spearhead that same initiative on the Senate side. And indeed, with Orrin Hatch signed on, it has looked like this is something that could happen. [As an aside, both men have allegedly promised their colleagues the details of any tax reform negotiations, especially relative to tax breaks and carve-outs for the more equal animals will remain secret for fifty years. because we wouldn't want the people to see how the sausage of crony capitalism and government client groups is made. They might get mad and head to Washington with pitchforks, which would be very costly for the shack-born pols, who have become millionaires while 'serving the public.' - SR]
It’s important to note that we’re only talking about tax reform, not cuts. That’s what has kept this tenuous bipartisan movement together. The approach is largely revenue-neutral and would likely end up distributionally similar to what we have now. But with economists estimating that the cost of tax complexity could be up to $1 trillion every year, merely having a revenue-neutral and simpler tax code could be hugely beneficial for the American economy.
Senate Democrat leadership wants put a boot to all of this. Harry Reid and Chuck Schumer appeared yesterday to demand that any tax reform must actually be a tax hike, as reported by Bloomberg:
Any tax overhaul “has to be under the total understanding that this can’t be revenue-neutral,” said Reid, a Nevada Democrat. “It can’t be even close to neutral. It has to be a significant tax target.”
That target, according to Reid and Schumer, should be what the Senate Democrats’ tax-hiking budget aimed for – a tax hike of nearly $1 trillion.
Yeah! ‘Cuz, like, um, ya know, all of those tax rises at the beginning of the year really jump-started the economy and narrowed the income inequality gap!
When will the pols learn that there isn’t enough money in the world to pay for current obligations AND continue to grow the government at this rate?
Just look at Social Security…
Beginning on 01.01.10 and extending through the end of 2020, 10,000 Americans will become eligible for Social Security (and Medicare, for that matter) every single day.
According to the CBO, baseline SS expenditures are projected to be:
$11 trillion over the next decade.
$20 trillion over the decade after that.
$34 trillion over the third decade.
For a grand total of $65 trillion on Social Security payments alone.
Medicare and Medicaid are even worse and throw Obamacare on top of that! What most people do not realise is that, if we were paying the same interest rate on the national debt that we were during the Clinton Era, debt service alone would eat up every dollar of tax revenue.
In 2010, John Kitchen of the US Treasury and Menzie Chinn of the University of Wisconsin published a study entitled:
By 2020, Kitchen and Chinn project the amount of US Treasury debt that foreign governments will have to buy in order to finance our spending and debt will have to rise to about 19 percent of the rest of the world’s GDP, which they say is . . . do-able . . . BUT TOTALLY NEVER GONNA HAPPEN UNREALISTIC.
Whether the rest of the world will want to do it is another matter. A future that presumes the rest of the planet will sink a fifth of its GDP into U.S. Treasuries is no future at all.
Progs always say that we are 5% of the world’s population, but use 25% of the planet’s resources, which, according to them, is a very bad, racist, oppressive, selfish, and mean thing to do.
Evidently, being 5% of the world’s population and expecting the equivalent of the Coolies to build our modern-day railroads, which are known as Obamacare, Social Security, Medicare, free college, subsidised housing, cradle-to-grave welfare, etc., by demanding that the rest of the world spend 19% OF THE GLOBAL GDP EVERY YEAR ON US TREASURIES beginning in 2020 while we sit on our couches eating Twinkies watching American Idol while our solar-panel-generated air conditioners are blasting away because ‘we are so trying to save the planet, fighting for a woman’s right to choose, believe in SSM, and protecting the oppressed Muslims from those dastardly Middle Eastern Christians and the JOOOOOOOOOS, man!’ is perfectly acceptable.
According to the tax publisher, CCH…
In 1984, the number of regular, 8.5″ x 11″ pages in the tax code and regulations was 26,300.
In 2003, the number of regular, 8.5″ x 11″ pages in the tax code and regulations was 54,846.
In 2013, the number of regular, 8.5″ x 11″ pages in the tax code and regulations was 73,954.
No, we don’t need no steekin’ tax reform AT ALL!