First, the Sixteenth Amendment to the Constitution, ratified in 1913, was written to allow Congress to tax income without the apportionment requirement. This Constitutional Amendment allows for a progressive tax code. You cannot say it is “unconstitutional” because, well it is in the Constitution. Now. A progressive tax code is a core pillar of socialism. Thus our great grand parents voted to put socialism in our Constitution. A progressive tax code means some Americans can pay more, and other Americans pay less. You hear that in the progressive media when they say “the rich need to pay their fair share.”
As of 2013, in our nation the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent. We all vote, we all get federal services, but 45.3 percent will not pay any income taxes. Thus the real answer is to repeal the Sixteenth Amendment to the Constitution. Until we can fix the core problem, we fight the battles we can.
I love our listening to our Republicans propose their new tax plan today. The current tax plan tries to fix a significant problem in our existing tax code. The death spiral deep blue States have been stealing from the other states. These States include District of Columbia Hawaii, California, New York, New Jersey, Maryland, Massachusetts and Illinois. When they raise State taxes, it doesn’t hurt their citizens as much because they would then be able to deduct their State taxes from what they owed to the federal government.
Thus these San Jose globalist aristocrats don’t care when Democratic-dominated California raises their State taxes. They owe less to our federal governmen. Therefore when State like Idaho which is well managed by Republicans who try to live within their means, it means less. The less State tax you pay potentially the more federal tax is owed. Naturally, Democrats and Republicans from high tax States will oppose this tax reform.
Also this tax reform limits the amount of mortgage deductions you can claim. This also hits deep blue states harder. The Washington Post reports “Over a third of filers in many Democratic states such as California, New York, New Jersey and Connecticut claim the SALT deduction on their returns. Under the GOP plan, people would still be able to deduct up to $10,000 on the property taxes they pay locally, but they would no longer be able to deduct the other taxes they pay to state or local governments from their federal tax payments.” The Tax Foundation created a pretty cool interactive map showing who pays more than $10,000 in property taxes. As you the overwhelming majority of Americans pay much, much less.
The question I ask, is where is the economic nationalism in this tax plan? Where in this law that makes goods and services coming into this nation cost more, to make it more attractive to manufacture those products and provide those services in this country? This tax plan is massive on benefit to the business owners, but is nearly non-existent in supporting the American worker. Obviously the Chamber of Commerce and other open border globalists will oppose any economic nationalism. The Republican Establishment serves the crony-capitalists more than they serve the American voters. These Republicans and their open border globalist business allies want protection to continue to bring in an unlimited amount of low-cost workers and ship an unlimited amount of American jobs overseas. However, the rest of us will only benefit from economic nationalism. If big business want tax cuts, we want American jobs for American citizens.
The Wall Street Journal reports “To prevent companies from shifting profits abroad, the bill creates a new 10% tax on U.S. companies’ high-profit foreign subsidiaries, calculated on a global basis.” The New York Times reports the “United States is proposing to effectively levy a global minimum tax of 10 percent, which would apply to income that high-profit subsidiaries of American companies earn anywhere in the world.” That is good start. It means when companies like Apple manufactures its phones in China it still owes 10% tax to the people of the United States. It should be more, but something is better than nothing.
Already President Trump’s America First is paying dividends. Remember when the Chamber of Commerce said that manufacturing was gone forever? Since President Trump manufacturing is up 155,000 since he became President. Remember when globalist anti-Americans said that coal, gas, and oil would never come back, and even if it did, it would all be robots? Coal jobs were down 31.5% over the last 10 years. Now, since President Trump and an American First economic policy coal production is up over 17% over the past year. While coal jobs are lagging up only 1,300. We understand these things take time. However that is still growth. In addition remember when progressive globalist said we would never see 3% growth again? We are seeing it. This tax-reform is ok. An economic nationalist tax reform would be far better.