President Trump and his Republican allies in Congress are close to pushing a tax reform package that would be the legislative victory that his presidency has been seeking. Critics of his tax proposal say it favors the rich at the expense of the poor and middle class, and supporters say it will provide an economic stimulus that would benefit everyone. Obviously, cutting taxes will mean less revenue for the government, which is already operating at a deficit. Few will argue that this will lead to higher deficits and higher interest rates in the short run. However, supporters of tax cuts believe that cutting taxes will stimulate more than enough growth to offset the reduction in tax rates. This sounds good, but it has never been proven in practice. Tax cuts during the Reagan and George W. Bush administrations resulted in the sharpest increases in the deficit in the post-depression era. Even staunch conservative pundits like Ben Stein agree that sharp tax cuts would be damaging to our economy.
There is no question that our tax code is far too complicated, which always favors people who can afford fancy CPAs and tax attorneys. I also agree that our corporate tax rates are too high and suppress job growth. My hope is that once the President’s tax proposal gets to the Senate, bipartisan negotiations will result in a simplified tax code and lower corporate rates, but personal rates should not change much. Otherwise, if the President’s tax package as it stands becomes law – expect a sharp spike in our deficit, double-digit interest rates, and a deep and painful recession. We’ve seen this movie before.
Inflation has impacted all of us. The price of almost everything has spiked faster and harder than at any time since the 80s. Few things can obliterate a modern economy more than out-of-control inflation.
For most people, there is little upside to writing about the January 6th hearings, but as you probably know by now, I don’t worry about those things. We all must stand for something. The hearings have almost everyone taking sides before a single witness is called. Democrats believe that the events of January 6th were a calculated effort to undermine our democracy by demolishing two of the most sacred tenants of our nation, free elections, and the peaceful transition of power.
Most people consider themselves either a conservative or a liberal. I think if we forget political parties, which flip their positions on things all of the time, and instead focus on the actual definition of what it means to be a conservative and what it means to be a liberal, we might be able to temper the emotional reactions some of us have with political discourse.