Here Comes The Tax Reform Challenge…

The issue we historically held with Mick ‘Cantalopes’ Mulvaney, was his direct association with Speaker Ryan when it comes to tax/budget plans. Thankfully, so far, Mulvaney has outperformed expectations and our fears have not been seen in Trump policy. We are cautiously optimistic.

One AP article disingenuously previously reported the White House was moving away from the initial campaign tax reform proposal. That outline was pure gas-lighting. The central issue of tax plan disparity centers around import tax tariffs and various alternative proposals.

House Speaker Paul Ryan is all-in with his “Border Adjustment Tax”, it is part of his larger ‘Better Way’ tax agenda. Apparently, according to The Hill, Mulvaney is not in alignment with Ryan. Good. The bottom line is Ryan’s plan is Tom Donohue’s plan. Ryan’s “Better Way” is the construct of the U.S. Chamber of Commerce.

President Trump is not in line with the complex Border Adjustment Tax nonsense. We’ll have to wait and see how this shakes out in the weeks ahead.

THE HILL – The White House is signaling an interest in moving the tax-reform debate in a different direction.

A House tax reform blueprint, released last year as part of Speaker Paul Ryan’s (R-Wis.) “Better Way” agenda, had long been viewed as the starting point for tax reform. During the campaign, President Trump’s tax plan was revised to more closely resemble it.

But the Trump administration is now drafting a new proposal, with officials considering a range of policy options beyond what Republicans in Congress have put forward.

Office of Management and Budget Director Mick Mulvaney told CNBC in a video posted Wednesday that “it’s too early to say” if the White House’s plan would resemble the House’s blueprint. But he suggested the administration wouldn’t hesitate to go its own way.

“The House can go and do what they want to do,” Mulvaney said. “We are going to formulate our own policies.”

The White House made clear after last month’s collapse of an ObamaCare repeal bill that it intends to take more of a leading role on tax reform.

In the last several weeks, Trump and members of his economic team have been meeting with lawmakers, businesses and industry groups to get their input. (read more)

Advertisements
This entry was posted in Budget, Decepticons, Legislation, media bias, Paul Ryan, President Trump, Uncategorized. Bookmark the permalink.

114 Responses to Here Comes The Tax Reform Challenge…

  1. Gil says:

    I wonder if the reports about the delay in funding border wall building is a ploy at leverage for border tax that ryan wants? The BAT is a VAT and i dont like THAT. So sayeth dr. Seuss.

    Liked by 21 people

    • Bob says:

      Has anyone heard of the Fair Tax….it would take care of all the our Country’s money problems….the politicians all know it….but they won’t act on it because it takes away their power and gives it to the people where it belongs. All this be bickering on the present tax code is kabuki and eyewash for the public. I am a President Trump supporter, but on this issue he is way off base. Bringing the Fair Tax would make him the most famous President to sit in the White House.

      Liked by 3 people

      • Gil says:

        Of course. Fair tax flat tax, its simple. All the vultures who make money off taxes including preparers, E.A., attorneys etc would have to get new jobs!

        Liked by 1 person

        • Bruce Fauth says:

          And as one of those who prepares returns I would gladly find other employment if it means doing away with the billions (yes billions) wasted on nothing more than helping people comply with their 16th Amendment obligations. I have some other skills and can learn new ones as needed. Put Blockheads, Clowns and Jackoffs** out of business?

          But much more importantly, it would take power from Congress and give it to the people. And that’s why, as much as we want it to, it will never happen short of almost an Act of God. Let us pray.

          ** That’s H & R Block, Liberty and Jackson Hewitt that serve those who aren’t ‘do-it-yourself’ types on Turbo.

          Liked by 1 person

      • booger71 says:

        Congress will never voluntarily give up the power they hold over us through the tax code. I like either the flat tax with no deductions or the Fair Tax a lot.

        Liked by 4 people

      • C-Low says:

        Fair Tax I will second that. Three HUGE reasons.

        1. The Fair Tax by its design (sales tax) will pay huge dividends to our domestic industrial advantage by making our exports non taxable while making foreign imports to pay the same tax as domestic competitors.

        2. The average estimated taxes paid on food/basic goods is returned as a regular check to every citizen. Keeps it simple and creates a bottom rate that is un-taxed without all the complication, fraud, waste of thousands of pages of tax law.

        3. Overnight the massive hidden monies made in the black market will be added to the tax base. Also illegal aliens will be forced to pay taxes without the without the citizenship return check for necessities.

        Liked by 4 people

        • Seeing the details laid out like this, C-Low, I can now say without reservation that I had the “fair tax” even more then when it was just a simple, invisible sales tax!

          Spending is the problem, not the method of tax extortion. And now we read #2 above, that EVERY CITIZEN GETS A CHECK FROM THE GOVT??? WTF???

          Liked by 1 person

          • SteveInCO says:

            The concept here is to tax absolutely everything…even basic necessities. But send everyone a refund equal to what they would have spent on bare necessities. That way there’s no wrangling about whether to tax caviar as a luxury or not tax it as food, whereas a can of beans isn’t taxed. That way you aren’t taxed for what you would have paid for a can of beans, even if you yourself bought caviar. It’s not a welfare scheme unless you consider not taxing absolutely everything a welfare scheme.

            The reason why everyone gets sent a check is so you don’t have to prove to the government you’re poor enough to need a check. Joe Broke gets a check, so does Bill Gates.

            Liked by 1 person

        • SeanThornton says:

          There’s one HUGE problem with this type of plan. For those in, at, and near retirement, they’ve saved under a plan where the most tax comes out as you make it. Now that they’re living off of their savings, it gets taxed mostly as you spend it. There has to be some way to make a transition to this fair to the elderly.

          Liked by 2 people

          • mimbler says:

            Yes, that is my complaint. I worked hard to save money for retirement, and a lot of it has already been taxed at a fairly high rate. Taxing it again when I spend it would mean I spent a lot of hours of labor for very little real pay.

            This is never addressed in the plans so I think the proponents are basing the tax rate knowing all this money that will now be double taxed. The poor won’t care because they don’t have savings, and the rich won’t care because they are always defering taxes.

            Surprise, the middle class savers get hit! You can always rely on them when you need to raise taxes,
            Mike

            Like

      • AJ says:

        The Fair Tax is a scam. I want the federal government to shrink and the Fair Tax will not do that. The Fair Tax is a UniParty construct.

        Liked by 2 people

      • Big Jake says:

        Here’s a fair tax: whatever you make send in ten percent. Done.

        Over.

        Finished.

        The economy would explode if that happened.

        Liked by 1 person

        • bobdog says:

          The ideal federal income tax could be completed on an index card, with the entire Internal Revenue Tax Code printed on the back. Period.

          Like

        • mimbler says:

          That works for people on salary. A lot of the complication of the tax code is to decide how much you really made. The local hardware store owner’s income is not what is in the till at the end of the day.
          All those deductions allow him to get down to his net earnings, and some of them are complicated like capital depreciation, etc.

          For me, taxes are very simple. I file the short form and take standard deductions. There is no way it will ever be that simple for business owners.
          Mike

          Like

      • JoAnn Leichliter says:

        A million cheers fit the Fair Tax!!

        Like

      • COLibertyBelle says:

        Agree totally!

        Like

    • filia.aurea says:

      “I do not like this Ryan man.
      I do not like his Better Way Plan.
      I do not like — oh, just you wait —
      Mick Mulvaney will put things straight”.

      Liked by 18 people

    • setup2100 says:

      One thing you have to give RYAN credit about is he does not lie when it comes to TRUMP. He keeps telling him and showing him he is not his friend and does not support him in any way. His actions speak as loud as his words that he is not and never will be on the TRUMP Train. The problem TRUMP does not believe him and keeps saying Paul you really do not mean that!!! What else can RYAN do to let TRUMP know he is nothing but an flaming A****** in RYAN opinion???

      Liked by 4 people

    • James O'Malley says:

      Ryan, trying to leverage Trump? The guy who literally wrote the book on the subject? I’d like to see how that’ll work out for Ryan.

      Like

  2. U.S. Chamber of Commerce – The “Park Place” for parasitic Swamp creatures.

    Liked by 11 people

  3. M33 says:

    President Trump will win.

    Guaranteed.

    Liked by 11 people

  4. snaggletooths says:

    So far I like Mick Mulvaney hope I can say that down the road.

    Liked by 10 people

  5. starfcker says:

    Is that a Guiness Mick is drinking?

    Liked by 1 person

  6. mikebrezzze says:

    I don’t like anything that Paul Ryan is for

    Liked by 9 people

    • SEJMON says:

      I DO NOT TRUST HIM AT ALL…HIS BODY LANGUAGE IS HORRIBLE…

      Liked by 7 people

    • BigMamaTEA says:

      ………….Could a Berkeley college professor who once advised the presidential campaign of 2004 Democratic presidential nominee John Kerry derail the best opportunity for conservative tax reform in three decades? As implausible as this may sound, it could well prove true if the Republican leadership in the U.S House of
      Representatives continue to insist on the inclusion of the so-called Border Adjustment Tax (BAT) in their tax reform legislation………..

      …………..Alan Auerbach, the director of the Robert D. Burch Center for Tax Policy and Public Finance at the University of California, Berkeley, is the godfather of the BAT. This tax, which would apply to all U.S. imports, would effectively function as a massive national sales tax estimated to generate a whopping $1.2 trillion of revenue for government coffers over the next decade. The fact that House Republicans are turning to a liberal professor on one of America’s most left-wing campuses for inspiration on tax reform is a bizarre turn of events………..

      http://cfif.org/v/index.php/commentary/43-taxes-and-economy/3540-godfather-of-republican-border-adjustment-tax-plan-was-a-john-kerry-adviser

      Liked by 3 people

      • WSB says:

        “Rather than turning to a disruptive, punitive tax hatched by a Berkeley professor, who writes papers for the Center for American Progress and advises liberal Democrats, conservatives in Congress should return to the pro-growth philosophy of Ronald Reagan, the last president to deliver meaningful tax reform. Republicans need to be aggressive in ridding the tax code of special interest loopholes so tax rates can be lowered fairly for all businesses, small and large, and middle-income taxpayers who have borne the burden of the failed economic policies of Barack Obama.”

        This is because Republicans in the Party are not Republicans.

        Liked by 4 people

  7. wheatietoo says:

    I don’t see much that is actually “better” in any of Paul Ryan’s ‘Better Way” proposals.

    It smacks of the same Orwellian word crafting that we saw in the ‘Affordable Healthcare’ bill.

    Liked by 15 people

  8. Richard Brickner says:

    I will get to your garden as soon as we get some rain. The ground is so hard now it can’t be tilled.

    Like

  9. ALEX says:

    This is great news. Ryan neutered himself with Ryancare and Team Trump now realizes he can’t put together a majority…..

    I like the President and his team fighting for their priorities…I am hoping for a lower middle class tax bracket combined with a business friendly corporate rate…That and a healthcare plan that lowers premiums and you can run on all this…Otherwise Bye Bye majority…

    Liked by 7 people

    • SeekerOfTruth says:

      Ryan lost a lot of credibility as a leader by the massive Health Care failure. He is diminished a lot in power and Trump people now have more power to run right over and through Ryan at Congress to get things done.

      Ryan has one more chance to redeem himself and his ego as a leader. And that means Trump has the edge on the deal for the next key legislation. Ryan must preve for himself and the Republican party that he can deliver.

      Ryan’s failure was so massive that he had to bail to Europe for days during recess so he would not come back and face his voters for his failure. Hiding = shame. It was obvious.

      Liked by 7 people

      • Jerzy2GA says:

        Something tells me Ryance was nothing but a test of leadership. If it passed it would be win for the president , the speaker and the republican party in getting something done. If it didn’t work it proves what most people (not named the HFC) though, that not only was the bill not popular, Ryan could flock enough of the herd.

        Liked by 1 person

      • eagledriver50 says:

        SoT…You bring up a very salient point on Ryan…”his ego as a leader”…Ryan’s ego is so big that he will refuse to work with PDJT and as such will become an albatross around the neck of the rest of the party…time to jettison the deadwood!!!

        Like

    • TPW says:

      All of the “income tax cuts” talk and or action is BS…….they will get their revenue some other way guarantee ………Just like cutting Medicare Medicaid…it has already been done in the cover of dark…….

      Like

  10. grandmotherpatriot says:

    Ryan needs to go !

    Liked by 7 people

  11. NJF says:

    So far this guy has seemed solid.

    Cautiously optimistic this will be the end of Lyin’ Ryan the Rat Weasel.

    Liked by 8 people

  12. Howie says:

    Now that their stupid Russia Sceme has flopped they are back to Trumps Tax Returns…..Pathetic.

    Liked by 7 people

  13. Sedanka says:

    How do we get rid of Ryan if his continual failures don’t do it? His funders insist that he not resign from the speakership, and his RINO supporters in the House – who are numerous and also well-funded – won’t lift a finger to force him to step down.

    Liked by 2 people

  14. I can’t remember when congress has had to actually write the bills. I believe that President Trump, Wilbur, Cohn and Mulvaney will write the bill. I also think that the Trump Admin will be the force behind getting it passed, hence making Ryan useless too.

    Liked by 7 people

  15. This is a good place for some topical speculation. For all of those tearing at their clothes over Cohn’s presence in the White House, it has occurred to me that Trump has him there for something very specific… tax reform. POTUS is known to bring in specialty players that may have opinions in opposition with him on many subjects but excel at a very important thing that Trump cares about. Is that Cohn?

    Liked by 6 people

  16. gary lacey says:

    Lyin’ Ryan’s “Better way” in three steps, Its 1 for the money, its 2 for the money and its 3 for the money. Any questions?

    Liked by 3 people

  17. LoveofUSA says:

    Paulie Boy Ryan is an actor play-acting as Speaker of the House.
    He doesn’t understand what Speakership is all about.
    Speakership is nothing but a power trip to stoke his bloated ego.
    Go back to your Walled-home, Paulie Boy and play with your video games.
    You are a Fake, Paulie Boy

    Liked by 1 person

  18. “The House can go and do what they want to do,” Mulvaney said. “We are going to formulate our own policies.” Ryan’s healthcare failure has him irrelevant, and the US Chamber goes with him. Good!

    Liked by 7 people

  19. piper567 says:

    TRUMP clearly listened to all of the people during the campaign who were telling him stuff, not.
    I believe TRUMP can maneuver his way through even the most reasonable-sounding liberal pablum.
    He did not get where he is by being a dupe.

    Like

    • BG2 says:

      Donald is an old NYC Democrat. Avoiding a relapse is vital.
      Patient progressing well as we speak.

      Liked by 1 person

    • BG2 says:

      Oh dear, just saw this…..so let’s see whether Donald is a now global warming Statist.

      “However, reports in March suggested that members of Trump’s senior team were divided over pulling out of the deal, with Secretary of State Rex Tillerson and his own daughter Ivanka advising him not to pull the plug over concerns it would upset major allies.”

      If you aren’t worried you should be.

      Liked by 1 person

  20. TheLastDemocrat says:

    I was just contemplating: fair tax. OK. I just dropped My fed tax return in the mail. My taxes were 6.5% of my AGI.

    So, should a flat tax be 6.5% of income? If we got that much out of the more wealthy people, who hide in tax shelters, overall we would have plenty of money.

    But wait. If a business provides a “compensation” package that is not within the definition of income, then the government never gets that money. And so the po folks pay to have a military and a national highway system and et cetera while the well-to-do folks get all that at extreme discout or for free.

    So, I again came around to the following conclusion.
    1. An individual fed tax encourages deceptive moves, such as having a company buy a car or house, or enlist a full-time doc, so net “salary” can be lowered.

    2. A corporate tax encourages U.S. companies to either employ illegals or H1s, or to move portions of the business offshore, hurting the U.S. economy.

    3. A major influence upon interest rate is the balance between funds-to-loan and the desire-to-borrow. Low funds = higher rate, big desire = higher rate, more funds = lower rate, less desire = lower rate.

    4. The maximizing solution is a federal sales tax. You buy something, you have a 5% sales tax that goes to the Fed. And, no company has corporate income tax, and no individual has federal income tax. No home-loan-interest deduction, no student-loan-deduction, etc. Simple sales tax. If you earn money and save it, it is not whittled down by taxes – so you have an incentive to save. This drives down interest rates for your neighbor, who then goes and buys, and contributes to the federal revenue.

    –And then all voters see how much of their money goes to the federal government. If someone make sthe appeal that there should be ‘health care for all,’ and presents an analysis that this would require a boost to federal sales tax from 5% to7%, then we all could vote on that.

    We could also vote on specific time-limited “taxes,” or fund-raising initiatives, say .25% sales tax, to support an awesome war against Iran, or Canadia, or whomever.

    –A limit to all of this is that the federal budget somehow needs to be zero-budget: no deficit in the long run.

    Liked by 2 people

    • William Ford says:

      It’s a great idea for high income earners and bad for low income earners. It’s totally regressive. Low/middle income earners will pay a higher percentage of their income in taxes as they spend virtually all of it on necessities while high earners save/invest a much larger percentage of their incomes. Nearly 50% currently do not earn enough to pay income tax. That 50% of the population will be a huge net loser on such a tax approach. It will be wildly unpopular with them resulting in broad political consequences.

      Like

    • auntiefran413 says:

      I’m no accountant and could barely — make that almost — follow your post, TheLastDemocrat, but I am 100% in favor of a flat tax — no loopholes, no fancy deductions…a plain and simple flat tax…perhaps a “graded” flat tax X% for those earning over X number of dollars, etc. I believe I’ve seen plans with no tax at all for people earning less than $X. Even I can understand that 🙂

      Like

    • Dennis Leonard says:

      Looks really cool.Now who votes to get rid of the Income tax,your withholding form and the SS,Medicare,Medicaid,state income tax deductions.Then you give the power of a sales tax to Congress.Actually I got a better idea,why not give all you wages to the Gov and let them decide how much you need to live on.

      Like

    • artichoke says:

      The problem with the cost of healthcare is we are not allowed to disaggregate the costs. Due to Obama we already have health insurance for all, and all policies must cover everyone, so there’s no way to see how much specific populations load the costs onto the rest.

      Populations, especially HIV+. That was the real purpose of Obamacare, Bathhouse Barry got us all to have to pay the enormous healthcare costs of his HIV+ constituency and friends. Some HIV+ woman was telling Sen. Jeff Flake she needs Obamacare to continue because her care costs over $100,000 per month.

      In the old days, that diseased body would not have been funded to continue. Too much burden on society.

      Good luck getting rid of that cost now. It will be so bloody nobody even tries.

      Like

  21. Pam says:

    I’m with the choir here about the better way agenda. I shudder every time I see in print or hear it mentioned on TV. So far, it looks as if Mulvaney is with POTUS so I’ll also say I’m cautiously optimistic as well.

    Liked by 6 people

  22. William Ford says:

    How much longer is it going to take until Trump realizes all of his agenda initiatives will go nowhere until he forces Paul Ryan out as Speaker and replaces him with someone who supports his agenda?

    Like

  23. jdvalk says:

    “One AP article disingenuously previously reported the White House was moving away from the initial campaign tax reform proposal.”

    Of,course, AP is moving away from actual employees via layoffs and actual computerized content — and not just financial figures but actual copy, so there’s that.

    Like

  24. Ghostrider says:

    Speaking of Speaker Ryan, I cannot get this post from April, 2016, out of my mind. If you want to get rid of Ryan, then the pressure and focus needs to be applied on his sources of funding:

    https://theconservativetreehouse.com/2016/04/12/unreal-paul-ryan-schedules-party-leadership-fundraiser-at-home-of-anti-trump-super-pac-donor/

    Liked by 1 person

  25. Donna in Oregon says:

    Pres. Trump will get the best deal that he can. Ryan has already fallen on his Better Way sword with the healthcare fiasco. Whatever happens… I hope no one says “Paul Ryan or Better Way” on Lou Dobbs. Poor Lou loses his mind, gets his Irish up and rants and raves the rest of the show.

    Liked by 1 person

  26. BG2 says:

    SD, pal…. erasing comment on the danger confronting President Trump’s electoral platform and his base from his philosophically NYC Democrat Kids is your prerogative …. it’s your blog , do what you want
    You might think that’s helpful to Donald….. I couldn’t possibly comment.

    Like

    • SteveInCO says:

      Personally, I’m glad he slapped you upside the head.

      He wrote an entire post to ask people not to pull out Jared/Ivanka conspiracy theories, and you ignored it. It’s his site. Take a hint.

      Like

  27. Random Comment says:

    Taxing income is bad as it discourages effort and enterprise. Taxing consumption is good as saving is encouraged. Taxing assets is good as lazy assets are more likely to be more efficiently employed for income generation.

    Like

  28. littlebird160 says:

    The Fair Tax is, as it’s name implies, the only “fair” means of taxation. Any sort of income tax is inherently punitive and immoral. It punishes success and rewards failure. It’s true, the Fair Tax takes away the Government’s ability to control its citizens behavior. That’s why it’s never seriously debated, or considered by members of Congress. More tax payers need to get educated on the Fair Tax plan and, in turn, educate others so that Congressional constituents demand a serious debate on th floor of the house.

    Like

  29. raw moon says:

    Mick did really well on Laura ingrahams’ radio show the other day. She had a few ‘pointed’ questions that he stood up well to. She’s been hammering Trump a lot lately as well … crotchety

    Like

    • Gadsden says:

      Yeah, I’ve stopped listening to her. I’m not interested in hearing about the details of the latest palace intrigue or hearing her nitpick every little thing Trump does. He has a long term plan and strategy which the pundits and talkers cannot comprehend.

      Like

  30. trumpsbamagirl says:

    John Harwood looks pretty bad.. Jake Tapper’s virus must be contagious. Symptoms of Trump Derangement Syndrome perhaps?

    Like

  31. Somewhere in Dixie says:

    Ryan is the biggest obstacle Trump has to implement his agenda. You listen to Ryan and you can see a bureaucrat who never put a foot outside a government job. He heeds to go.

    Like

  32. Gadsden says:

    This is why Trump signed onto Ryan’s Heathcare plan…he knew it would fail and expose and weaken Ryan. Now Ryan is in a weaker position to push any of his proposals going forward. Eventually he will likely be replaced as Speaker as it becomes apparent he can’t get the job done. Trump thinks long term, not just about how much red meat he can give the base this week.

    Like

  33. artichoke says:

    Trump was earlier agreeing with Ryan’s BAT, and it makes sense to me. If you tax exports, you get imports. If you tax imports, you get exports. What we need now is to export more, so we should have something like a BAT.

    Otherwise, if Toyota can make a car cheaper in Japan than Ford can make it here, then we’re hurting our company to help the foreign one. We can’t keep all our Walmart buying habits. We have to start paying a bit more for imports, to give some advantage to domestic production.

    That’s why every other advanced country does this!

    Like

    • SteveInCO says:

      if Toyota can make a car cheaper in Japan than Ford can make it here, then we’re hurting our company to help the foreign one.

      First question I’d ask is WHY Toyota can make that car cheaper in Japan. Are we doing something to force Ford’s costs higher? A government reg or six billion? Labor law that is dysfunctional? Fix that first, then start wondering if the Japanese are being predatory somehow.

      Maybe Toyota is just smarter than Ford.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s