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| A/O Global Intelligence Weekly: Tax Reform and Drug Trafficking |
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Tax reform is on the table right now. The President is campaigning for tax reform and the "Big Six" -- Senators McConnell, Hatch, Speaker Ryan and Congressman Brady, Treasury Secretary Mnuchin and Presidential economic advisor Gary Cohn -- are trying to reach agreement on a tax cut proposal.
We at American Opportunity have been speaking out for tax reform for seven years. Our "Growth Code" is such a proposal. The concern at the moment is a rush to pass a bill in order to earn a quick a legislative achievement. Tax reform has to be for a purpose: to spur growth in the economy by encouraging investment. If the tax "reform" doesn't spur investment, the tax reform may very well end up being pointless window dressing.
We certainly support tax cuts, especially for the struggling middle class. Conversations with Democrats seem to be centered in trying to keep the rates high or higher for "the rich". I hold no brief for "the rich", but we must do a reform that encourages business to expand and hire more people, and make it necessary to pay higher wages. This must be the objective, and it cannot be derailed by the political left, or by an artificial time pressure.
One example is the discussion over business expensing, or being able to write their investment off their taxes. This encourages growth, but is something that the "Big Six" may not adopt. Sure it costs money, but building up investment and growth is the only way to recapture the cuts while providing better jobs and wages for everyone.
Activity is no substitute for true reform. It's not merely "getting something done" that counts but WHAT ACTUALLY GETS DONE!
The national goal is not tax reformm but growth and spurring the investment to get growth. Anything else is the definition of failure.
More after the jump. . . |
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