Vote Alert: Tax Cut for America
Given our current political environment, there is no easy way to reform the base structure of our current progressive income tax. The GOP tax bill certainly will not solve the systemic problems with our tax code or system of governance. The bill does not make the code simpler, flatter, or fairer. Conservatives have long advocated for transformative tax reform and would have preferred a flatter tax that broadens the base so that everyone pays a fair, low rate.
This GOP tax bill does cut taxes for almost everyone, particularly for families with children. Additionally, this bill substantially lowers the ridiculously high business tax rate from 35 percent to 21 percent and significantly reduces the tax liability for “pass through” income of small business owners. But with the inclusion of an expanded refundable child tax credit, this bill increases the current progressive nature of the federal income tax by ensuring that even more individuals pay zero taxes and some others “earn” extra cash through the tax code. Simply put, this bill is a tax cut, not tax reform.
While conservatives would prefer that Congress cut spending to offset at least part of the tax cut, unfortunately, that was not an option on the menu. Neither Republicans nor Democrats have any interest in reducing the size of the federal government or even cutting waste in a meaningful way.
Ultimately, when faced with the final choice of spending into oblivion with a progressive tax code that cuts taxes for almost everyone who pays them (and gives money to many who don’t) vs. spending into oblivion without a tax cut and no chance for economic growth, the best thing for conservatives is to pocket the tax cut and continue fighting for more structural reforms to the code, more spending cuts, and entitlement reforms.
As an added bonus, this bill repeals the unconstitutional requirement to purchase medical insurance. To be clear, this is not a fulfillment of the GOP promise to repeal Obamacare. However, it is better than the status quo and will help consumers escape from the monopoly of the insurance cartel and create alternatives that will compete with the system.
The bill was approved by the Senate 51-48 on December 20, 2017, and the House of Representatives approved the bill 224-201 on December 20, 2017.
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