Tuesday, August 28, 2012

Both Political Parties Are Greedy Liberals Eyeing Your Tax Credits And Tax Deductions

The partisan and liberal New York Times must think we can't read out here in fly-over country. "Tax reform" is now code for "tax increase".

The drumbeat to raise your taxes continues, here, an "absolute necessity":

Both parties agree on the absolute necessity of reforming the addled, inefficient American tax code. That means eliminating much of the underbrush of credits, loopholes and expenditures and then reducing marginal tax rates. Of course, the devil is in the details. Just about every tax expenditure has a powerful interest group behind it. That is part of the reason why neither party has gotten specific about what they would put on the chopping block, and both anticipate a drawn-out fight during the tax reform process.

Marginal tax rates are much easier to raise and frequently are raised, which is why the credits and deductions have to go: as long as the deductions and credits remain they suppress revenues when taxes are inevitably raised after a "reform". That's exactly what happened in 1993 after the broadly lower rates achieved in the 1986 tax reform were swept away by Bill Clinton. The deductions sacrificed in 1986 never returned.

Liberals in both parties intend to do this to the American people again.

There's nothing wrong with the current code that spending cuts couldn't fix: especially on defense and social welfare which both have dramatically increased under Bush and Obama.