Future US tax policy

[ExGingi]

With the ever increasing deficits and government liability, something will have to change down the road. Just tweaking with tax rates won't really do it, and economic growth alone won't solve the problem (though everything will be kicked as far down the road as possible).

Two of the most likely new taxes to be introduced, are a VAT (or some other sort of consumption tax), and a wealth tax (as well as some reform in taxation at death).

Now we see an actual idea being circulated. As pointed out in the article it would be challenging to enforce. Which is why I think a VAT, along with an expatriation tax is much easier to enforce (and possibly fairer).

I haven't fully thought through all aspects of a wealth tax, but I actually think it is doable (though the mechanism should be simplified, and the rate set low enough to disincentivize avoidance schemes).

https://www.cbsnews.com/amp/news/elizabeth-warren-plans-to-propose-a-wealth-tax-on-individuals-with-more-than-50-million/

What do you see in our tax future?

[S209]

With the ever increasing deficits and government liability, something will have to change down the road. Just tweaking with tax rates won't really do it, and economic growth alone won't solve the problem (though everything will be kicked as far down the road as possible).

Two of the most likely new taxes to be introduced, are a VAT (or some other sort of consumption tax), and a wealth tax (as well as some reform in taxation at death).

Now we see an actual idea being circulated. As pointed out in the article it would be challenging to enforce. Which is why I think a VAT, along with an expatriation tax is much easier to enforce (and possibly fairer).

I haven't fully thought through all aspects of a wealth tax, but I actually think it is doable (though the mechanism should be simplified, and the rate set low enough to disincentivize avoidance schemes).

https://www.cbsnews.com/amp/news/elizabeth-warren-plans-to-propose-a-wealth-tax-on-individuals-with-more-than-50-million/

What do you see in our tax future?

Don’t you think that the obvious solution should be curbing excessive and wasteful government spending? Probably accounts for the difference between our economic growth and the deficit

[yitzgar]

Don’t you think that the obvious solution should be curbing excessive and wasteful government spending? Probably accounts for the difference between our economic growth and the deficit

No politician gains politically from cutting spending. Raising taxes is much less risky for them. Especially if it's just on a small percentage of the people like the very wealthy

[S209]

No politician gains politically from cutting spending. Raising taxes is much less risky for them. Especially if it's just on a small percentage of the people like the very wealthy

Republicans generally tend to push less spending and less taxes.

[yitzgar]

Republicans generally tend to push less spending and less taxes.

Some of them pretend to until it comes down to it

[S209]

Some of them pretend to until it comes down to it

Yes, some do not follow through. Historically taxes have gone down under Republican administrations. See Reagan, Trump, etc.

[ExGingi]

Yes, some do not follow through. Historically taxes have gone down under Republican administrations. See Reagan, Trump, etc.

And what happened to deficits?

No one is touching the third rail. Social Security and Medicaid. Without addressing those, nothing will change the trajectory.

[yitzgar]

Yes, some do not follow through. Historically taxes have gone down under Republican administrations. See Reagan, Trump, etc.

But they don't cut spending much if at all.

[S209]

And what happened to deficits?

No one is touching the third rail. Social Security and Medicaid. Without addressing those, nothing will change the trajectory.

Cruz claimed he’d end Social Security

[ExGingi]

Cruz claimed he’d end Social Security

And Forbes promisesd a Flat Tax.

And Herman Cain was touting the 999 tax plan.

[aygart]

Yes, some do not follow through. Historically taxes have gone down under Republican administrations. See Reagan, Trump, etc.

But what does that have to do with spending?

[aygart]

(though the mechanism should be simplified, and the rate set low enough to disincentivize avoidance schemes).

LOL

I haven't fully thought through all aspects of a wealth tax

You don't say..

[Yitzshpitz]

(though the mechanism should be simplified, and the rate set low enough to disincentivize avoidance schemes).

Maybe the avoidance schemes and loopholes need to be dealt with more than anything

[S209]

Maybe the avoidance schemes and loopholes need to be dealt with more than anything

But why? We’re hardly undertaxed in this country. Cut spending! If this shutdown has taught us something it’s that there are way too many government workers.

[aygart]

But why? We’re hardly undertaxed in this country. Cut spending! If this shutdown has taught us something it’s that there are way too many government workers.

Very nice, now get off the campaign trail.

[Yitzshpitz]

But why? We’re hardly undertaxed in this country. Cut spending! If this shutdown has taught us something it’s that there are way too many government workers.

1) So that the government can collect taxes from wealthy enterprises. Many companies avoid paying much tax at all. Nothing to do with overtaxed
2) Cut spending is what every politician says they will do but don't. Also, its not one or the other
3) Is that really all that it has taught you?

[aygart]

1) So that the government can collect taxes from wealthy enterprises. Many companies avoid paying much tax at all. Nothing to do with overtaxed

Do you have non-cherry-picked numbers to back that up? Any source at all other than someone's political agenda?

[Yitzshpitz]

Do you have non-cherry-picked numbers to back that up? Any source at all other than someone's political agenda?

Btw I dont think the companies are doing anything wrong only that the tax laws should try to eliminate many of these schemes

https://www.nytimes.com/2017/03/09/business/economy/corporate-tax-report.html

https://www.investopedia.com/news/how-fortune-500-companies-avoid-paying-income-tax/

https://scholarlycommons.law.hofstra.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1325&context=jibl

[aygart]

Btw I dont think the companies are doing anything wrong only that the tax laws should try to eliminate many of these schemes

https://www.nytimes.com/2017/03/09/business/economy/corporate-tax-report.html

https://www.investopedia.com/news/how-fortune-500-companies-avoid-paying-income-tax/

https://scholarlycommons.law.hofstra.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1325&context=jibl

The first 2 are (the same) cherry picked data choosing one year and the ones paying the least taxes that year. It is also done by an agenda based organization.

Didn't read the last one yet, but are you sure it makes your point?

[yitzgar]

No politician gains politically from cutting spending. Raising taxes is much less risky for them. Especially if it's just on a small percentage of the people like the very wealthy

This is the bottom line. It doesn't matter what makes sense, but what is the political reality. I think ppl thought Trump would be different, since they thought he wouldn't be beholden to anyone, but he hasn't turned out to be much better than any other politician, and his hands are somewhat tied by Congress.