Following up on yesterday's ruminations over Ohio Governor John Kasich's addiction to the proven-failure of supply-side economics, aka "voodoo economics".....it seems that GOP Rep. Dave Camp (R-MI) will today introduce a "tax reform" bill in the House.
The bill has no chance of going anywhere in 2014 because Republicans have already made clear that they aren't doing anything....anything....to distract away from what they consider to be their winning secret-decoder ring midterms formula of exclusively bashing Obamacare leading up to November. But the new Camp "tax reform" bill provides yet another insight into the one-trick-pony mind of those representing today's Republican Party.
The Wall Street Journal, appropriately, just published a Dave Camp op-ed outlining his new "tax reform". I say appropriately because the WSJ is a Murdoch newspaper published by rich Americans for rich Americans. And Camp's proposal was written for rich Americans as well.
Camp's proposal is an exercise in redistribution. Yes, yes, I realize that it's only Democrats who are for "redistributing" tax monies on account of Democrats being socialists and so forth....but just humor me a minute and keep reading. Camp's "reform", he says, will not raise a dime of revenue....
The tax code changes in my plan are not intended as a means of raising revenue. If loopholes are closed, Americans should get the benefit by way of lower rates.
Republicans, and a few gullible Democrats, including President Obama, bought into the ZOMG THE DEBT & DEFICITS nonsense during Obama' first term. That hysteria led to calls from both sides to cut government spending....at the very time that government should have been spending, yes, like drunken sailors. As only one result, nearly a million government jobs were eliminated since 2009....further exacerbating attempts at economic recovery. The point being that the BIG, BIG issue in all those discussions was the Oh-My-God nature of the terrible debt and yearly deficits.
What does it take to pay down debt? Revenue. Tax revenue. But Dave Camp's new proposal for "tax reform" is meant to be revenue neutral. No debt or deficit reduction included. So, are Republicans really, really, worried, worried, worried about the debt and deficits....or not so much?
Contrary to popular folklore, what the GOP never worries about are debt and deficits. The national debt and deficits are but political stage props for the GOP, to be paraded around only when a Democrat sits in the Oval Office. Cheney told the truth when he told Paul O'Neil that Reagan proved that "deficits don't matter."
Camp's proposal would lower the top tax rate on under-siege rich Americans to 25%. The current top income tax rate is 39.6% for couples making over $450,000 per year. Do the math on your own time....suffice it to say that Camp's 25% rate on very wealthy Americans will put a big smile on their faces. In this new-old GOP proposal to not raise any revenue while lowering tax rates on the rich few.....if rich Americans pay way less....and the end result will not raise any new federal revenues....where will the money come from to award the rich few with that huge 14% reduction in their income tax rate?
Here's how Dave Camp squares that circle....
...the tax code will be made more effective and efficient by getting rid of special-interest handouts,....make the tax code fairer and more accountable. That means no more hidden provisions that benefit a favored few, and no more tax increases to fuel more spending.
Now think along with me here. If the rich and powerful will "break even" by the elimination of tax deduction "loopholes", what will the rich have gained from Camp's "reform?" Lowering the rates to save rich people from paying as much to the IRS will be negated by the elimination of "loopholes" which will increase even a rich person's tax responsibility.
Although left unsaid, Camp's proposal would of necessity have to redistribute tax responsibilities downward...if the plan is actually revenue neutral. Why do I say that?
What would happen if all tax deductions were eliminated from the tax code? The Congressional Research Service, in May, 2013, issued a report that concluded that all income tax rates would have to be INCREASED by 4.4% to just make up for the lost revenue from eliminating deductions.
So, Camp and the Republican's math doesn't add up. I know, shocker.
House Republicans....knowing Dave Camp's "reform" is going nowhere....are choosing again to make an ideological statement rather than approach governance seriously. Yet another shocker. Camp's "tax reform" bill is but another political stage prop in honor of trickle-down economics. Here's the tell....
...after this streamlining of the tax code, the size of the economy will increase by $3.4 trillion over the next decade, or roughly 20% compared with today. This will lead to nearly two million new jobs—and producing up to $700 billion in additional federal revenues that can be used to lower taxes even further or reduce the debt.
See? More deep cuts to wealthy Americans' income tax rates will....poof....explode a now-sluggish national economy, just like Bush Junior's deep tax rate cuts on the rich exploded the national economy....wait, what?
Dave Camp doesn't believe it either....he just wants you to believe it.
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