Foolish tax cuts

"Yes, I am very, very disappointed in this 'once in a lifetime' opportunity to fix our way out of date tax code."

Are all tax changes foolish? No, but many of them are. I have to say, I am somewhat less than impressed with what I have seen so far in the long (can I say that again?), L-O-N-G awaited tax reform bill. Why do I say that? Some of the biggest winners will be those who claim the standard deduction. Good - they will need it, as the personal exemption is going away. And with the personal exemption going away (along with some other deductions), some who have waited anxiously for some tax relief might end up paying more when all is said and done. Huh?

Here is what many of us our here in the hinterland were hoping for:

• Either a fair or flat tax system. Fair would be better, but we would settle for flat. What this plan is just more of the same.
• Abolish the IRS. It is a corrupt system which has been weaponized by both political parties. However, with what we saw with Lois Lerner during the last administration, that really took the cake.
• Fix the outlandish corporate tax rate we pay. Good. Some progress there. However, I would favor a zero tax rate for corporations. Why? The tax a corporation pays is just a cost which get rolled up into the cost of goods sold. When that happens, it is just a buried tax which the rest of us end up paying.
• Eliminate the death tax. Good. Got that one right. Even though Uncle Bernie thinks that is "criminal" to let families keep their own money rather than hand it over to the government, getting rid of this is the right thing to do.
• President Trump was very careful to say that the middle class is going to be the big winner and the rich will be the losers. However, most financial experts I have listened to the past day or two disagree. To correctly sell this to the public, giving real world examples to show how everyone save the top 1% would benefit. Sorry - after ObamaCare and our $2,500 savings on health care premium promise, many out here are a bit skeptical.
• Debt? What will it do to our $20T in debt? I have heard, "It might impact it at first, but in the long run it will be fine." Really? Never heard that one before - NOT!
• Seems the 35% top rate might actually stay at 39.5% for the richest of the rich. However, for the richest of the rich, that really does not matter. Much of their wealth comes from investments - not ordinary income.

Yes, I am very, very disappointed in this "once in a lifetime" opportunity to fix our out of date tax code. (Yawn)....boring. The devil is always in the details, and I am afraid once the Democrats get done carving this thing up, nobody will want anything to do with it. Me? I keep wondering how we could have mucked this thing up so bad. 

By the way, anyone heard about the progress on the GFY 2018 budget? It is due to be signed no later than Saturday night at midnight. Oh, that's right. On September 8, 2017, the President signed a CR to the current budget which "kicks the can down the street" until December 8, 2017. That one slipped right on by me. I thought only the debt ceiling got delayed. For a Congress and Administration who promised NO MORE CR's -EVER!, all I can say is -WOW!

Looking into my crystal ball, this is what I can see for the rest of the year. 1) Regardless of what Senator Graham said, healthcare reform under the title "repeal and replace" is done forever. The process of trying to triage ObamaCare will begin (in a bipartisan fashion) in earnest. 2) The proposed "tax reform" bill is going nowhere. It is a POS. Just like with "repeal and replace", I am afraid we will squander this opportunity also. 3) Get ready to see the GFY 2017 CR and debt ceiling issue kicked down the street far into 2018. December 8, 2017 will come and go with little fanfare.