Welcome To The Hunger Games: Trump's Tax Plan To Unleash Battle Royal Among D.C. Lobbyists

Authored by Michael Snyder via The Economic Collapse blog,

Are you ready for mass chaos in Washington?

There are lobbyists for just about every cause that you can possibly imagine, and they are always working hard to influence members of Congress on their particular issues.  But when you are talking about a major tax reform bill, that is something that virtually every single lobbyist in the entire city will want to be involved in.  Our tax code is over two million words long, and the regulations are over seven million words long, and any changes to our immensely complex system could have absolutely enormous implications.  There will be winners and there will be losers with any piece of legislation, and lobbyists will zealously fight to defend the turf belonging to their particular clients.  Often lobbyists from different sides will literally be pitted directly against one another, and it won’t be pretty. 

In fact, one analyst that works for Cowen Washington Research Group says that we could soon be watching “the corporate hunger games”

Almost every industry, special interest, and consumer group has an interest in the tax code, especially if the package ends up being as ambitious as Trump and Republican leaders want it to be. Chris Krueger, an analyst at Cowen Washington Research Group, told Business Insider that the battle over which loopholes to keep and which to throw out could get nasty.

 

“Welcome tribunes to the corporate hunger games!” Kruger said in an email.

 

“Only one-sixth of lobbyists were involved with health care (give or take — assuming it is one-sixth of economy). Six-sixths of lobbyists are involved in taxes.”

There is so much at stake, and if the Republicans are able to get something passed it probably won’t look much like the plan that Trump originally proposed.  But it is so important to do something, because today Americans spend more on taxes than they will on food, clothing, and housing combined.  That is morally wrong, and we desperately need tax relief.

Trump’s tax plan would nearly double the standard deduction, and that would be a wonderful thing.  It would provide instant tax relief to working class Americans, and that is something that I would greatly applaud.

Trump’s tax plan would also great reduce the tax rate for corporations.  Our big corporations certainly don’t need the help, but we do want to get our rate more in line with the rest of the planet.  Because our corporate tax rate is one of the highest in the world, it actually encourages companies to set up shop some place else.  Being more competitive with the rest of the world would likely mean more jobs for the American people.

Trump’s tax plan would also reduce the number of tax brackets for individuals.  Instead of seven, now there would just be three tax brackets of 12 percent, 25 percent and 35 percent.  To me, those rates are way too high, but of course I would like to eliminate the individual income tax entirely.

Many are criticizing Trump’s plan for proposing to raise at least a trillion dollars over the next decade by getting rid of the deduction for state and local income taxes.  For those that live in very high tax states such as California, that deduction is a really big deal

High-income Californians, for instance, pay as much as 13.3 per cent of their income to the state in addition to their federal taxes. New Yorkers can pay up to 8.82 per cent.

 

Just seven U.S. states have no personal income taxes, including Texas, Florida and Nevada.

Hopefully the Republicans can pass some sort of tax reform in the short-term, because the status quo is definitely not acceptable.

When the income tax was first introduced in 1913, the vast majority of taxpayers were being taxed at a rate of just one percent.  The following comes from Politifact

The 1913 law imposed a tax of 1 percent on income up to $20,000, for both individual and joint filers. However, exemptions from the tax — the first $3,000 of income for individuals and the first $4,000 for joint filers — meant “virtually all middle-class Americans” were excused from paying, according to W. Elliot Brownlee’s book, Federal Taxation in America.

 

The law also put in place a graduated surtax on incomes above $20,000; the highest rate paid, 7 percent, applied to Americans making more than $500,000 (about $11.4 million in 2011 dollars).

Today, Americans are being taxed into oblivion.  It has been reported that we spend more than 6 billion hours a year on our taxes, and I once wrote an article detailing 97 different ways that various levels of government extract revenue from all of us.

Every year government just gets bigger and bigger on the federal, state and local levels.  And the bigger government gets, the more oppressive it tends to become.

Personally, I would love to start starving the beast that the left has created, and a great way to do that would be to completely eliminate the federal income tax.

A lot of people could not even imagine a world without a federal income tax.  But the truth is that our country once thrived under such a system.  In fact, the greatest period of economic growth in U.S. history was between 1872 and 1913 when there was no income tax at all.

And we could do it again.  Today, the individual income tax only accounts for about 46 percent of all federal revenue, and if we reduced the federal government to a size that our founders would have wanted, we would be more than okay.

But even if we can’t greatly reduce the size of the federal government in the short-term, we can at least go to a very basic flat tax or a fair tax, and both of those systems would be far superior to what we have today.

If we can’t get a flat tax or a fair tax right now, we should at least try to dramatically reduce tax rates and simplify the tax code as much as humanly possible.

But if we do get a short-term victory, the battle is definitely not over.  In the long-term, we need to be very clear that our goal should be to abolish the income tax, the IRS and the Federal Reserve entirely.  Anything short of that is not good enough.

*  *  *

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

Comments

Anarchyteez Sat, 09/30/2017 - 20:06 Permalink

Trump’s tax plan would nearly double the standard deduction, and that would be a wonderful thing. It would provide instant tax relief to working class Americans, and that is something that I would greatly applaud.

Horse Shit! Then he increases the rate by 20% !

techpriest Anarchyteez Sat, 09/30/2017 - 20:30 Permalink

When it comes down to it, the government is broke, has too many obligations, and like every government in history they will raise taxes until they destroy the tax base and themselves.

And with that in mind, the largest share of the income is among the middle class. A "high worth individual," aka $1 million in investible assets, would only be making $100k with a 10% return, and even then, most of that very small group of people are going to be retirees.

So, to net the most tax you *must* increase taxes on the middle class. Siphon $100 a month from 200 million people and you are looking at an extra $20 billion a month, or quarter-trillion a year.

And let's be direct, this is exactly what Obama was doing with Obamacare - raising taxes in the form of exploding insurance premiums, and giving the insurance companies a cut for playing the role of tax collector.

In reply to by Anarchyteez

MEAN BUSINESS techpriest Sat, 09/30/2017 - 22:18 Permalink

techpriest, ^New_Meat^ is right about gangtards being pissed because suddenly they're paying federal taxes too once FairTax becomes law-of-the-land. Ditto your average "illegal household". The boost to federal revenue will equal the transitory cutback in spending decrease. And yes, retailers get paid to collect GST.Netting the *most* isn't a *must*Intriguing comment on ACA. +1

In reply to by techpriest

MEAN BUSINESS FreedomWriter Sun, 10/01/2017 - 09:42 Permalink

Very cool FreedomWriter, thanks for the link! Yeah I could support it too. I may take issue with impinging on State soveriegnty. I believe there is a proposed tax known as a Tobin Tax which taxes those financial transactions?Tax reform is by far the most important issue to discuss over the next year. Healthcare insurance and illegal households are important too, and absolutely connected to the issue of tax reform (ie: ACA is pegged to income whereas Speaker Ryan's AHCA pinned fed assistance to age and number of dependents), but taxes are at the top of that pyramid.FairTax is the frontrunner though, because it has been a House Resolution for years now in front of the WAY MEAN Committee (hence Ryan and current Chair Kevin Brady know about it), but also, VPOTUS Pence is a co-sponsor (or was?) of H.R. 25 FairTax. I believe this is why Mike Pence IS VPOTUS!search 'Pence on the Fairtax' a vid from 2008

In reply to by FreedomWriter

MEAN BUSINESS lil dirtball Sun, 10/01/2017 - 09:55 Permalink

Yeah, I know, it seems pointless to me too but this should be one of the most important discussions in 100 years, and people should make the effort to have serious discussions about it. So take VPOTUS Pence's advice; talk to your neighbours (about FairTax), maybe they'll get fired up and march down to their erp's office!Or maybe they have corporate logos!(I noticed my typo but somehow it works!) LOL

In reply to by lil dirtball

bobdog54 New_Meat Sun, 10/01/2017 - 08:59 Permalink

Lobbyists - one of the major reasons we have a swamp in DC. Lobbying is only fine if only done in a PUBLIC forum, no private meetings, no Caribbean trips or safaris,etc.
Trump brot it up one time that I am aware of in his campaign and then, never heard it again. Very much a sacred cow to congressional wealth building for the no term limited scumbags.

In reply to by New_Meat

Endgame Napoleon Anarchyteez Sun, 10/01/2017 - 09:42 Permalink

These are the Americans struggling to pay [rent] that absorbs half or more of their earned-only income.

They get:

1. No free or reduced-cost rent [for kids];

2. No $450 to $800 in free EBT groceries [for kids]

3. No monthly cash assistance [for kids];

4. No energy assistance [for kids];

5. No $6,269 child tax credit for a trip to the beach to entertain a boyfriend [for kids]).

They are:

1. Childless, single, low-income workers;

2. Noncustodial, low-income parents;

3. Single moms whose children are over 18 and no longer ensure them streams of unearned income to make up the difference between living expenses and wages.

My state has a per-capita income of $19k. The state above it has a per-capita income of $18k.

That is a little under $10 per hour. Assuming you have a full-time $10-per-hour job -- most are not full-time -- you have around $1,400 per month in take-home pay.

$1,400 minus $750 in rent for an awful, one-room apartment in a not-very-nice-or-safe area of the city equals [more than half] of your monthly wages.

The low-income people who are helped are the married people with [two incomes to cover the unaffordable cost of housing] who get a double standard deduction of up to $24,000. Many of them also get the child tax credit, reproduction-lotto windfall that, at the $6,269 maximum, equals 4 months of wages in a $9 per hr ($18k) job.

The tax "cut" kicks childless, single people, like me, to the curb and stomps on us, just like the rest of the government [benefit] apparatus.

Not only do we qualify for near zero in means-rested assistance, regardless of how our low our incomes fall, in my state, we do not even get UC to cover rent between jobs. I have never received one penny of Unemployment Compensation--zilch--but I have to pay into the system.

I also have to pay 15% SS tax when working as a 1099 contractor on every paltry $100 I make. In the era of family-friendly workplaces with 99% frequently absentee mom employees in back-watching gangs, that is where the childless people often end up: self-employment, where the SS taxes are double.

These welfare and taxfare-infused moms only have to work the welfare-reform minimum of 20 hours per week to get an array of free household bills and a child tax credit up to $6,269. They also pay [half] as much SS tax as a self-employed childless, single citizen who gets no freebies.

Welfare / taxfare momma and absenteeism-gang employee pays into SS at 7.5%

Childless, single, self-employed citizen pays into SS at 15%

Married couples and people with children benefit more from the SS system as well. If one parent dies, Social Security provides a check to the other parent that easily covers rent and other major household expenses, sort of like a child support check.

Married couples have two SS checks in retirement--the husband's and the wife's--enabling a very different lifestyle than single SS retirees face, particularly the single women who worked for low wages all of their lives who get less due to a lower "top-5-earning-years" quotient.

Mommas are allowed to hold onto higher and lower-paying jobs through an enormous amount of excused absenteeism, not just during and after multiple pregnancies due to maternity leave, but for years after the kids are born.

Who couldn't hold onto high-paying jobs for 5 or more years when massive amounts of absenteeism is tolerated for working moms? They "need the pay," even when their husbands make plenty of money to support the household, so the absenteeism is overlooked and accommodated in the extreme.

Childless, single people "do not need the pay," it is said, because we do not have children.

Which is why the childless, single retirees are often the ones bagging groceries with arthritic hands to try to cover the cost of rent due to living on one SS retirement check.

At least, due to the SS-retirement income, they can afford rent on the combo of the government check and the paltry pay in those jobs, whereas younger, single, childless people just have the pay, which does not cover rent.

This is the group government kicks with a jack boot in every facet of the tax and [bebefit] laws.

We need our own party. Politicians with kids--almost all of them--never or very rarely support anything but putting us at the bottom of the ladder and beating us with the last rung.

Childless people are 28% of the population, those of us over 40, that is. Single, childless people are a bigger group when the under-40 and often underpaid crowd is included. Add non-custodial and single moms with kids over 18, and the screwed group is even larger.

In reply to by Anarchyteez

runswithscissors Sat, 09/30/2017 - 20:11 Permalink

Are you ready for mass chaos in Washington? Yes......not because I was deluded into thinking Trump was a conservative or because I thought he would follow thru with campaign promises...it was definitetly for the mass chaos.

Cabreado Sat, 09/30/2017 - 20:12 Permalink

"Battle Royale"In a Republic, there needs to be a <trickling> of funding of worthy endeavors at the central level.No need for an "IRS," and of course the Fed needs to be abolished.I suggest Focus by the People on a thoroughly corrupt and defunct Congress, in order to achieve these things.Oops...

HRH Feant2 Sat, 09/30/2017 - 20:15 Permalink

Starve the fucking beast. K-street should be illegal and starved.

The best thing that could happen to the USSA would be if a nuke went off during the SOTU.

Fuck DC. I don't give a damn.

WhackoWarner Sat, 09/30/2017 - 20:28 Permalink

every human being on this planet can only hope that USA USA USA goes down the toilet with the flush we all wait for.It is a blatant crime syndicate without one attempt anymore to hide actions.Schucks. Does anyone there get it yet?  I for one am so sick of reading the endless op-ed's and what if's.  Meaningless drivel.

Cabreado Sat, 09/30/2017 - 20:38 Permalink

The First order of business of the People is to shore up the corruption in the institution designed to represent them.Else, chaos prevails, and eventually a re-structuring of the government (which you will like even less).

teslaberry Sat, 09/30/2017 - 20:39 Permalink

standard deduction----actually the filing threshold--for the income tax was introduced in 1913 at an inflation adjusted 60,000 dollars income of today. AND NO PAYROLL TAX.  MIDDLE CLASS TAX RELIEF IS LIES.  you want relief? eliminate SS and MEDICARE 'tax' WHICH IS A FRAUD ON THE PUBLIC. AND LIFT THE STANDARD DEDUCTION TO 20K. start with that. then you can do whatever else you want. otherwise it's just a token bullshit move to cover your ass.  trump is full of shit, and i'd vote for him again if it meant keeping hillary worrld war 3 dog out of the white house.

HRH Feant2 teslaberry Sat, 09/30/2017 - 21:07 Permalink

I think the first $60K should be exempt. Period. For everyone.

As for corporate tax being lowered to 20% and small business tax being capped at 25%, WTF? You want me to start a small business, pay double for SS tax and 5% more as a small business owner? FOAD.

In reply to by teslaberry

wisehiney Sat, 09/30/2017 - 21:29 Permalink

Mama told me when I was young"Come sit beside me, my only sonAnd listen closely to what I sayAnd if you do this it'll help you some sunny day""Oh, take your time, don't live too fastTroubles will come and they will passYou'll find a woman and you'll find loveAnd don't forget, son, there is someone up above""And be a simple kind of manOh, be something you love and understandBaby be a simple kind of manOh, won't you do this for me, son, if you can""Forget your lust for the rich man's goldAll that you need is in your soulAnd you can do this, oh baby, if you tryAll that I want for you, my son, is to be satisfied""And be a simple kind of manOh, be something you love and understandBaby be a simple kind of manOh, won't you do this for me, son, if you can"Oh yes, I will"Boy, don't you worry, you'll find yourselfFollow your heart and nothing elseAnd you can do this, oh baby, if you tryAll that I want for you, my son, is to be satisfied""And be a simple kind of manOh, be something you love and understandBaby be a simple kind of manOh, won't you do this for me, son, if you can"Baby, be a simple, really simple manOh, be something you love and understand

Atomizer Sat, 09/30/2017 - 21:41 Permalink

You live in a life of illusion. Music is destoyed. No one wants to bootleg auto tunes cunts who can't sing. They can't even multi task. Don't make me review a Cleveland band, MDID. One person. Running the entire orchestra. Same with dead can dance Today, use Auto tune to present a fucked up idol. Public Image Ltd. - Careering - YouTube This new 14 year old  cunt rag is a example of a failed music industry by blaming bootlegging shit music. Auto tunes is not music. 

MEAN BUSINESS Sat, 09/30/2017 - 21:57 Permalink

Mike; if I lived in your state and you were my Rep, I would vote for you if you will vote for FairTax.No quarter. a flat tax, which is what Russia had to go with, requires reporting income to fed.gov. and locks in the IRS apparatus (talk about lobbytards! boo fukin'hoo). FairTax requires reporting your age and dependants, address, and bank account number.plop plop fizz fizz no IRS? What a relief! - said every citizen, every company.Will people stop buying stuff? yeah but quite transitory (no payroll tax + prebate + no tax preparer fee)Or the lofty "that'll never happen"ers. fuk youMike; see Mike Pence on FairTax 2008, rok on!

Atomizer Sat, 09/30/2017 - 22:12 Permalink

Whisler was the equivalent to Pirates Cove in Cleveland, OH. Then changed to Peabody's down under. Wild times. Lost my car keys. Stage diving. Chameleons UK band members found them. My friend broke his arm jumping into a mosh crowd. It was a wild night. I was in trouble at home not making my curfew. The band members were helpful in finding my car keys. I always remember them faithfully.   The CHAMELEONS - 'In Shreds' - 12" 1981 ...