As of now, I am in control here, in the White House

Tag Archives: taxes

Republicans Consider Raising the Gasoline Tax

Are you kidding me? Tax and spend? Republicans?

From the Washington Examiner:

Republicans are weighing whether to raise the federal gas tax. It’s an idea they are prone to hate, but they may need it to pay for President Trump’s infrastructure investment plan.

Supporters of the idea note that the tax hasn’t been raised since 1993 and have plenty of evidence that resistance to a hike is wearing down.

The U.S. Chamber of Commerce recently called for the Trump administration and Congress to raise the gas tax by 25 cents per gallon to help pay for an infrastructure package, projecting it would generate more than $375 billion over a decade. For 25 years, the federal tax on gasoline has held steady at 18.4 cents per gallon and 24.4 cents per gallon for diesel. It is not indexed to inflation.

The Republican chairman of the House Transportation and Infrastructure Committee, Rep. Bill Shuster of Pennsylvania, prodded colleagues at the recent GOP retreat to consider setting aside years of opposition and raise the tax.

And perhaps most revealing, some of the most conservative House members who heard Shuster’s pitch are open to it.

Why Trump’s Tax Plan is Not His Actual Tax Plan

This morning, NBC Today Host Matt Lauer asked Treasury Secretary Mnuchin to swear President Trump’s proposed tax cuts will pay for themselves.

I wonder if Matt ever asked any member of the Obama administration to swear that people would be able to keep their doctor under Obamacare.

Of course, Mnuchin didn’t raise his hand because he knows full well the tax cuts won’t pay for themselves. They will cover their cost in part as a result of the economic stimulus they provide, but even conservative economists don’t believe tax cuts fully pay for themselves.

President Trump knows this too. What all the flummoxed pundits and politicians in Washington don’t understand is that this is not a proposal. This is an opening proposal.

A businessman who specializes in dealmaking has landed in a town, Washington, that doesn’t understand business. Trump is going big with his proposal because he knows he won’t get everything he wants. His actual goal is probably pretty clear to him, and it’s not what he is proposing. It’s less.

What is going on here is that Trump has decided, after the Obamacare repeal debacle, to start making policy from the White House and not leave it to a wonk and politician like Speaker Paul Ryan.

Ryan put out an Obamacare repeal plan that was actually his final proposal, and look what happened. He didn’t leave himself room to maneuver. And so it sunk. Trump is now left trying to revive it.

As the tax debate goes on over the next year, look for Trump to mostly stick to his guns until the last minute, and then “magnanimously” agree to jettison some of his ostensibly cherished proposals for a deal.

The deal he wanted in the first place.

Trump Proposes 15 Percent Corporate Tax Rate; How About Zero?

President Trump Wednesday is expected to propose cutting the corporate tax rate to 15 percent, fulfilling a campaign promise and eclipsing a longstanding proposal by House Speaker Paul Ryan to drop the rate to 20 percent.

I’ve got an idea. Let’s cut the rate to 0 percent.

I honestly don’t understand the corporate income tax except that it appeases some sense of “fairness” harbored by liberals and moderate Republicans. Because it’s true, corporations don’t pay taxes. Their customers do.

Years ago, when I was a bartender and waiter at a place in Washington DC, the city raised taxes on alcohol served in restaurants. I remember one day right after the new government-sponsored pickpocketing scheme went into effect, the owner of the establishment came downstairs with a list in his hand. He went into the registers and reprogrammed each and every drink price to exactly reflect the tax increase. The customers’ drink prices went up. His taxes did not, although his business might have declined a bit, thanks to the local politicians.

If the federal government set the corporate tax rate to nothing, “corporations” would continue to pay taxes because the owners and executives would still have to fork over income taxes on a graduated scale.

Okay, I don’t what it would cost. Trillions of dollars over ten years, I know. I’m speaking in principle, I’m not an economist, so don’t trust me on this.

Buhhht, presumably, you could buy back some of the revenue loss by eliminating all the corporate deductions. And imagine the taxes that would be raised by the increased business activity. Our corporations would stop fleeing overseas, while foreign companies would actually want to relocate into the United States. Who knows, maybe Apple would stop making your iPhones with Chinese slave labor. And most importantly, in the United States, salaries would rise, many more jobs would be created, and the price of certain goods would decline.

And, oh yeah, you could cut government spending.

Even if companies weren’t paying too much less in taxes because they were losing their deductions, you have to think of the psychological effect of “zero taxes.” It would be a magnet for doing business in this country.

Obama to Taxpayers: Fund My Jobs Proposals

President Obama today plans to effectively demand that taxpayers fund his jobs plans, saying tax increases that might be used to offset tax cuts long coveted by business should be rolled into financing his agenda instead of keeping things deficit-neutral. Speaking in Chattanooga, Tennessee on the latest stop in his soak-the-rich speaking tour, Obama will… Continue Reading

Obama Sneaks in a Change to His Tax Pledge

Having spent $1 trillion on health care reform, Democratic leaders have checked the books and discovered to their dismay that THE UNITED STATES IN RUNNING UNBELIEVABLE DEFICITS. Sorry, let me get a hold of myself. It’s just that they’ve taken the big overindulgence at dinner that existed under GOP rule and turned it into an… Continue Reading