• Comments off

    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corporations horde the gains and do not put them back into the economy, then the reform will have failed and should be repealed.

  • Comments off

    Hypocrisy in the Guise of Reform

    It ceases to amaze me how easy it is for Democrats to embrace hypocrisy in the guise of “reform.”

    Take for example their attacks on grants and subsidies to pharmaceutical companies researching much-needed drugs; agricultural companies improving crop yields; and other industries on the Democrats’ hit list – like insurance, banks, and any that support self-regulation over government intervention.

    Yet, at the same time, they voice support for pork-belly projects that build bridges to nowhere and fund energy pipe dreams with no chance of commercial success.

    It’s all just another smoke screen for the Democrats’ ideal to redistribute wealth at the expense of America’s heritage and continued prosperity.

    Grants and subsidies are simply a tool to improve how each of us lives our lives. Used properly, they can provide incredible benefits.

    Used as favors, they demean every one of us.

    Democrats love to give out favors. I don’t.

  • Comments off

    The Tax Cuts and Jobs Act

    Just before Christmas, President Donald Trump signed into law the “Tax Cuts and Jobs Act.” The law will reduce corporate tax rate and increase corporate deductions for expensing.  The tax reform also reduces taxes for married couples and single filers.

    The reform is a step in the right direction for businesses and individuals — for one, it permanently reduces the U.S. corporate income tax rate to 21 percent, putting the United States among the global centers with low corporate taxes.  That will presumably spur growth and investment.

    Some critics claim the tax reform is only for the wealthy.

    There is no question that the new tax laws do provide significant benefits to wealthy individuals.  But we cannot deny that the prosperous and wealthy support many of our country’s industry, arts, and culture. Decreasing their tax burdens, defending their rights, and applauding their success will be helpful to the American people overall.  Decreasing the tax burdens of corporations and the prosperous will benefit those who are less fortunate if they are able to properly support social programs, education for the arts, and nonprofit organizations that they admire through funding or donations.  Such arguments are often met with distain by liberals who believe benefits should be denied the wealthy.  Such reactions, however, deny the simple reality that any cut in taxes spurs development and investment.  Critics also say the tax reform does not give enough breaks or savings to the middle class.

    That is simply not true.  Increasing the standard deduction, improving child care credits, and establishing new tax brackets most certainly helps the middle class.  One cannot help but wonder if those objecting to the reform are doing so not because of the law itself but because of the President who signed the legislation.  Once again, we see blind solidarity on the left against President Trump even when long overdue reform is adopted.

    But I do agree with the left on one critical issue that is not adequately addressed in the reform.  We cannot give a pass to those among the prosperous who, instead of feeding society, feed upon it. There can be no more robber barons and corporate raiders who plunder businesses to personally profit at the cost of jobs, families, and homes.  Although this new tax cut legislation is a step to providing savings for American families and businesses, we must remember to weed out those who are only seeking profit for themselves and who offer nothing back to the people who fuel their ability to prosper.