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.
Interesting factoids:
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!
http://tinyurl.com/qd6plz3
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