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Thursday, January 17, 2013

Brookings Institution: Video: Fiscal Policy: Robert McDonald: U.S. Tax Structure Hampers Competitiveness: How to Reform The Tax Code



I agree with Robert McDonald that are corporate taxes are too high but what I would add to that so are. Our corporate subsidies or corporate welfare even that what I would like to see instead is a flatter tax system. Where taxes would be low to make us competitive or more competitive with our foreign competitors and whatever. Subsidies that remain in place would go to promote economic and job growth in the United States and to encourage low income people. To move up economically and into the middle class rather then staying on some form of financial public. Assistance indefinitely but encourages these people to be self sufficient creating more people paying more in taxes. And collecting less less if anything in public assistance down the road but paying less in taxes then middle class workers pay today. We only get there with leadership from the President who says this is one if not his top priority when it comes to deficit. Reduction and the economy and pushes for it if not proposes his own plan but also from Congress from Republicans and Democrats. In both the House and Senate, otherwise we'll never get anything done.

Tax reform won't be part of the next round of deficit reduction which hopefully will have an agreement in February or early March. Which is fine and it doesn't have to be part of the next round either. Republicans just agreed or gave up 600B$ in new revenue when it comes to deficit reduction as part. Of the fiscal cliff deal and won't be in the mood for more new revenue and will be all about spending cuts and reforms in the next deal. Which will put both sides in position to negotiate their own version of what savings and reforms should look like when it. Comes to deficit reduction, Republicans will argue for entitlement reform but so will Democrats but they'll do it. In different ways, with Republicans it will be with retirement age and perhaps requiring wealthy people to pay more. With Democrats it will be about having the wealthy pay more into Medicare and Social Security. But perhaps pay more for the benefits they get out. I think they can agree on the second part and perhaps reform how Medicare and Medicaid compensates hospitals and doctors as well.

What I am hoping for that comes out of whatever deficit reduction deal that emerges in February is some type of agreement. That Congress takes up tax reform in 2013 that the House Ways and Means Committee and Senate Finance Committee. Hold hearings on tax reform and markup their own bills or a new Bi Partisan commission emerges thats all about tax reform. And whatever they propose Congress both House and Senate would be required to take up and vote on. In their taxing committees and that those proposals get a vote on the House and Senate floors. And perhaps this is done by the fall or summer of 2013 to go along with whatever deficit. Reduction deal emerges in February, so hopefully in February or March we get a Bi Partisan agreement. Of 1-2T$ in deficit reduction and then a tax reform deal later in the summer or fall of another. 1T$ in new revenue when it comes to new revenue from tax reform that would allow us to lower corporate taxes later on. That encourages economic and job growth in the United States.

Hopefully after we are finally done with deficit reduction as far as finally reaching an agreement. That gets our debt and deficit under control where we are no longer in crisis mode and keep coming up against new deadlines. Economic and job growth will finally be ready to takeoff again in America which will really put us in position. To pay our debt and deficit down and then we can move to things like infrastructure investment thats paid for. Not by borrowing and creating a national energy independence policy that invests in a wide range of. American natural resources but to move to these areas, first we have to solve the debt and deficit.