Tag Archives: taxation

Tax debate serfdom

Source: Future of Freedom Foundation
by Jacob G Hornberger

“While serfs on the plantation debate the income-tax bill that is being proposed in Congress, it is incumbent on us libertarians to continue reminding people that there is nothing about this debate that has anything to do with the restoration of a free society in America. The bill might or might not make life on the plantation better for people but it won’t make them free.” (11/29/17)

https://www.fff.org/2017/11/29/tax-debate-serfdom/

Tax the taxers

Source: Cafe Hayek
by Don Boudreaux

“Michael Saltsman reports that San Francisco City Supervisor Jane Kim worries that automation, by eliminating large numbers of particular jobs in coming decades, will lead to chronic unemployment. And so Ms. Kim wants to tax employers each time they replace workers with robots or algorithms …. Never mind that labor-saving innovations have been destroying particular jobs since the invention of the lever and the wheel without yet causing chronic unemployment. Quite the opposite, in fact: the number of paid jobs is today at an all-time high (as are global living standards). The number of people with paid jobs is now 3.3 billion, a figure more than three times larger than the total population of the world at the dawn of the industrial revolution — a revolution that greatly accelerated the invention and use of labor-saving technologies. Instead, note the irony of Ms. Kim’s proposal: her tax taxes job creation.” (11/28/17)

http://cafehayek.com/2017/11/tax-the-taxers.html

Senate committee advances GOP tax bill, moving closer to floor vote

CNBC

Source: CNBC

“The Senate Budget Committee on Tuesday approved the Republican tax bill, a crucial procedural step toward a vote by the full chamber later this week. With the party-line 12-11 vote to advance the plan, Republicans overcame one possible roadblock in their push to chop tax rates for businesses and individuals by the end of the year. … Republican Senate leaders want to pass the plan later this week. As it holds 52 seats, the GOP can lose only two votes and still approve the bill under special budget rules, assuming all Democrats and independents oppose it.” (11/28/17)

https://www.cnbc.com/2017/11/28/senate-budget-committee-advances-gop-tax-bill-moving-closer-to-floor-vote.html

Schumer, Pelosi cancel meeting with Trump after Twitter attack

Source: Politico

“House and Senate Democratic leaders on Tuesday abruptly withdrew from a scheduled White House meeting about averting a government shutdown after President Donald Trump publicly slammed them and cast doubt on the negotiations. Trump tweeted early Tuesday that House Minority Leader Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) ‘want illegal immigrants flooding into our Country unchecked, are weak on Crime and want to substantially RAISE Taxes,’ adding, ‘I don’t see a deal!’ Pelosi and Schumer responded by canceling their plans to meet with Trump and GOP leaders to discuss a deal to keep the government open, raising the prospects of a shutdown as government funding expires next week.” (11/28/17)

https://www.politico.com/story/2017/11/28/schumer-pelosi-cancel-meeting-with-trump-262853

Two simple ways for Congress to improve the child tax credit

Source: Niskanen Center
by Samuel Hammond

“The Senate tax reform bill, which passed through committee last Thursday, makes significant improvements to the Child Tax Credit (CTC) but still falls short of providing working families with genuine tax relief. Fortunately, the Senate bill contains sufficient resources to enable a restructuring of the CTC without crowding out other priorities, like business tax reform.” [editor’s note: Instead of tinkering around the edges, how about repealing the income tax and replacing it with nothing? – TLK] (11/21/17)

https://niskanencenter.org/blog/two-simple-ways-congress-improve-child-tax-credit/

How corporate income taxation is misunderstood

Source: EconLog
by Richard McKenzie

“The corporate tax is, effectively, a means of taxing people hidden ‘behind trees,’ which is one of its chief attractions to politicians interested in garnering additional tax revenues for the government. They don’t have to admit that the corporate tax is a disguised tax hit on median and low-wage workers and low-income consumers and not on just the rich Trumps, Bill Gates, and Warren Buffets of the world. The exact size of the various hits felt by all income classes are literally unknown and unknowable (although many econometricians feign that their statistical equations reveal truth). This means that the proposed corporate-tax-rate reduction will likely pad the pockets of the rich by some undiscernible amount, but it will also increase the disposable income of people all the way down at the bottom of the income ladder.” (11/20/17)

http://econlog.econlib.org/archives/2017/11/how_corporate_i.html

US House passes GOP tax bill

Source: CBS News

“House Republicans on Thursday afternoon passed a massive package of corporate and individual tax cuts, holding a final vote on their highly-anticipated tax overhaul plan Thursday afternoon. Lawmakers approved it in a 227-205 vote. The bill would slash the corporate tax rate, cut taxes for individuals and reduce the number of tax brackets. … The Senate will also have to vote on its version, and then the two bills, if they both pass, would be reconciled in conference.” (11/16/17)

https://www.cbsnews.com/live-news/house-passes-massive-gop-tax-overhaul-bill/

The estate tax is a poor way to help the poor

Source: Niskanen Center
by Samuel Hammond

“The Center for American Progress has a new report defending the estate tax on the basis that it incentivizes charitable giving …. There may be many solid arguments for supporting the estate tax, but I think this is a particularly bad one. The definition of an inefficient tax is that it significantly distorts economic behavior through avoidance, or what economist call the “excess burden of taxation.” The paradigmatic example of an excess burden is the ‘window tax’ levied in 18th century England, in which property taxes were tied to the number of windows in a house. As a result, one can still find old homes in which the windows have been closed with bricks in order to avoid property taxation. Excess burden is an important concept because it underscores how the accounting cost of a tax obscures the full social cost created by distorted economic behavior.” (11/16/17)

https://niskanencenter.org/blog/estate-tax-poor-way-help-poor/

Ivanka: Child tax credit “not a pet project”

Source: San Francisco Chronicle

“Yes, it turns out, there is something that chafes at the unflappable Ivanka Trump. The presidential daughter and adviser, in a ‘full-blown sprint’ as she sells the Republican tax overhaul plan and juggles other initiatives, has had it with all that talk about her ‘pet project’ to increase the child tax credit. ‘I get a little bit frustrated when people call it a pet project,’ Trump told the AP as she spent a day shuttling between events in multiple states. ‘This is a major project, this is not a pet project. This is a major initiative to ensure that there is meaningful middle-income tax relief for the American taxpayer.'” (11/15/17)

http://www.sfgate.com/news/politics/article/Ivanka-Trump-says-child-tax-credit-not-a-pet-12360227.php

GOP targets ObamaCare mandate in tax bill

Source: The Hill

“Senate Republicans are including the repeal of ObamaCare’s individual mandate in their tax-reform bill, a risky play that meets President Trump’s demands but could cost the measure support from centrists. Repealing the mandate gives Republicans more money to offset the cost of tax cuts, and would fulfill a long-standing GOP promise to eliminate a core part of former President Obama’s health-care law. Republicans can afford only two defections in the Senate and pass the tax bill if all Democrats oppose it, but Sen. John Thune (R-S.D.) expressed confidence that Republicans have the votes after a count. At the same time, Republicans acknowledged after a conference lunch that the decision to add the mandate’s repeal to the tax bill was not unanimous, suggesting uncertainty that the GOP has 52 votes.” (11/14/17)

http://thehill.com/policy/healthcare/360383-gop-targets-health-mandate-in-tax-reform