Moving from Tax Cuts to Fiscal Reform

Moving from Tax Cuts to Fiscal Reform

Any discussion of fiscal reform must start with a truth that is seldom heard. The purpose of taxation is to generate the revenue needed to pay the government’s bills. In the face of rising deficits, even in good times (leaving … Continue reading

Thoughts on a Pro-Growth National Tax Reform Program

Thoughts on a Pro-Growth National Tax Reform Program

President Trump’s tax reform program is in stark contrast to critics on the Left who still want a tax system that redistributes income to those who will be denied opportunity by an ideology that deplores capitalism, fears economic growth, and … Continue reading

An Enemy of Income Tax Reform: The “Business Transfer Tax” (a/k/a “Business Activity Tax” and “Business Flat Tax”)

An Enemy of Income Tax Reform: The “Business Transfer Tax” (a/k/a “Business Activity Tax” and “Business Flat Tax”)

The “Business-Transfer Tax” in all its forms is a proposal for a dual-tax system, to have a value-added tax built upon a rejiggered income tax. This second tax comes disguised as income-tax reform with the VAT label avoided. Sad to say this ill-conceived proposal amounts to a cover-up and remedy for the failure of U.S. trade negotiators to insist that VAT nations abide by the principles of free trade. But, two wrongs don’t make a right. As an enemy of real income-tax reform, it would make the income tax even more disjointed and difficult to unscramble into a simple, tax-neutral, low-rate income tax. Continue reading