The Tax Cuts and Jobs Act: A Market Devoid of Burdensome Regulation
First and foremost, I am a capitalist. I believe that a free market devoid of burdensome regulation and taxation creates wealth for everyone — without a need for the kind of socialistic redistribution that is favored by Democrats.
The reality is simple: taking from those with wealth and who create it, and giving it to those who don’t create it, is a recipe for economic malaise.
The Tax Cuts and Jobs Act, which was signed into law before Christmas and will begin to be implemented in 2018, will ease the tax policies that the Democrats had set in place and seemed to believe would redistribute wealth from the rich to the poor.
Under the new policy, the legislation reduces the corporate tax rate from a maximum of 35% to a flat rate of 21%; allows increased expensing of costs; and eliminates the corporate Alternative Minimum Tax. These are just a few of the elements of the plan.
Lifting some of these burdensome regulations for corporations will allow businesses to bring in more revenue. The incentives may also encourage pay raises and hiring, and corporations that have moved overseas or are considering to do so may decide to return or keep their business in the U.S.
There are those outspoken against this new legislation because they feel corporations are already wealthy. Is that something we should see as a problem or an opportunity? The issue is not whether corporations are too wealthy. The issue is what wealthy corporations do with their profits. Do they plow it into hiring, investments and development that spur economic growth or do they use the money to increase executive pay, buy back stock and pay higher dividends to shareholders? High tax rates and burdensome regulations had been bogging corporations down and turning they away from investment. The new legislation will ease some of these regulations. That will help the American economy and job growth. But as permanent as the corporate tax reduction may be, that can be changed. If corporations horde the gains and do not put them back into the economy, then the reform will have failed and should be repealed.