Tag: tax plan

If You’re Going to Attack the New Tax Plan, Use Some Sense

By Mason Mohon | USA

While recently reading up on the late GOP tax reform legislation, which has more than a few changes on United States tax policy, I came across a particular article from CNN. It was titled 7 reasons why Republicans may have made a bad bet on the tax bill. The article then goes on to list seven reasons, and they are rough. The article, written by CNN Politics Reporter and Editor-at-Large Chris Cillizza is full of logical fallacies, mental jumps, and stretches that make my arm ache just to look at. The left’s attacks on Trump and Republicanism leave me astounded, for nobody in their right mind should or would take this seriously.

The first reason for the tax bill being bad is that “opposition is high… and growing”. CNN’s polls showed that the majority of the people oppose the tax bill, along with another poll that shows that non-Republicans think it goes against the middle class in favor of the wealthy. This is not a reason why the tax bill is bad for a few reasons. First, CNN polls a majority leftist audience, with studies reporting that the average CNN viewer profile “is a college-educated woman between the ages of 25 and 54, who tends to lean to the political left.” CNN has been polling leftists and progressive liberals, so why would their polls ever be in favor of a GOP proposal. At the same time, just because the majority opposes it, that does not mean that it is bad. This is a classic case of the appeal to the majority fallacy. It may be permissible if the author had a real impact on majority opposition, but he rounds off his reasoning with the two-word statement “That’s bad!”

The author had the option to make the argument that a significant amount of GOP voters are unhappy with the tax plan, which would harm the GOP in the next election and put many Congressmen in a dangerous position when it comes to re-election, but Cillizza did not, and his argument is still bad. This also would not have gotten around the issue of probably biased polling so he would have had to use a non-biased poll for this too.

The next reason is much shorter but just as bad. The CNN author claims that “People think the plan won’t help them.” Yes, people think the plan won’t help them. There are no statistics that say it will not, and there is no proof that the 37% of the population that believes this is grounded in fact. This reason does not matter at all.

Reason three seems to have a bit of well-sourced grounding. Donald Trump has claimed this tax bill is not here to serve his interests, yet they do source to a New York Times article that does provide well-sourced reasoning as to why the bill will not cause harm to Trump. Trump should not be lying, but make that your point. The president bending the truth is not a reason in itself as to why the plan won’t work.

Reason four faces the same issues as reason one: CNN polled left-wing people, and these left-wing people didn’t like it. Cillizza argues that people see this as a tax cut for the rich, with no backing as to whether or not it actually is. It doesn’t matter what the majority believes if there is no proof that they are well founded in their beliefs.

Reason five and six argue that Trump is not popular, citing his recent record low approval rating of 35% as a reason why the tax cut is bad. It is no secret that the approval rating is low, but why does this mean that it was a “bad bet” for the Republicans. The president has nearly nothing to lose. Six says that people do not trust the president on taxation, but that does not matter either. The author still does not make an argument for any impact of this on Trump or the GOP.

The last reason brought back memories of the 2016 election campaign season. Seven states that people want to see the president’s tax returns, which is the same complaint we heard leading up to November last year. Whether or not Trump has skeletons in his taxation closet has nothing to do with the plan’s impact on America, though, either.

The mainstream media, and CNN in particular, has shown themselves to be serious jokes. They do not seem to care about accountability to actual factual argumentation anymore. They obsess over appealing to a young leftist audience that will click on anything that even sort of depicts Trump in a negative light. As a libertarian and former (reluctant) Johnson supporter, it sucks to have to defend the current president from these senseless attacks. A lack of journalistic integrity makes the targeted side look good. It makes it look like CNN is in an echo chamber that will just feed the left-wing mob, rather than attack with strong arguments and facts. I see media companies left and right dipping into this pitiful type of journalism, and it saddens me to see that this is what the exchange of ideas has come to. CNN, along with the mainstream media, is day-by-day becoming more and more of a joke, and all I can do is cringe.

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Trump is One of the Most Free Market-Oriented Presidents in Decades

Charlie Gengler | USA

With his biggest success of the year, Trump’s presidency is turning out to be a dream come true for the small government types.  He gave to his country the biggest reform of our wretched tax system in decades, saving U.S. citizens thousands.  But the most important part of his tax plan is by far his cut for corporations.  He lowered their taxes down to 21%, still higher than that of the socialist Europeans.  Many a pundit of the left claimed that this was stealing.  Yet, with the bill passed, they are proven wrong, and libertarians across the country rejoice. After all, less taxation is less theft. This comes off the back of a slew of free market-oriented decisions.

He started off manning a blitzkrieg on Obama-era regulations, freezing all regulations until expressly approved by his administration.  He also provided aid to those negatively affected by Obamacare, both of these on his first day in office.  He enacted a small review of federal regulations, studying there impact on domestic manufacturing, but the big one came just six days later, on January 30.  He wrote in executive order 13771, which decreed, “Unless prohibited by law, whenever an executive department… publicly proposes… new regulation, it shall identify at least two existing regulations to be repealed,” and at the end of the next month, he began enforcing this order. This was, and still is, huge.  It has, over the course of eleven months, eliminated 800+ regulations.  He went on to eliminate regulations in matters of climate, education and other matters.

Reducing regulations is only a slice of the pie, Trump has gone for nearly the whole shebang.  He has taken more libertarian stances on climate change, backing away from global pressures, and taking a hard stance on climate laws.  His trepidation with global politics shows his hesitations towards global government, the nightmare of many a small-government individual.  His stances on climate change are also inviting.  Libertarians, by principle, are against laws concerning climate in almost all circumstances, therefore we should implore Trump to continue this path.

Moreover, his stances on firearms are consistent with libertarian values.  He is against regulation on guns in every instance so far.  Trump is not only consistent with liberty valuing people on the 2nd amendment though, for his views on LGBT issues tend to fall in line with us.  He supports gay marriage, one of the few Republicans to do so,  but also, by proxy of the DOJ, supports the baker in the controversial case yet to come to the supreme court, Masterpiece Cakeshop Ltd. v. Colorado Civil Rights Commission.  The president’s approval of the store, in this case, is vital to our republic.  Without it, the 1st amendment is under serious threat.

The only real complaint against Trump from libertarians came during his campaign, about the time when he was threatening libel laws.  The only problem?  He has yet to pose any threat to not only free speech but all major values consistent with our beliefs.  You might have qualms about his military policies or his stance on immigration, but, so far, he has been the smallest government president since Reagan.

The Senate Tax Bill is Lowering Tax Rates. That’s a Great Thing.

By Ashton Barwick | USA

The United States Senate recently passed a tax reduction bill by a narrow margin of 51 to 49. The bill lowers the top corporate tax bracket from 39.1% to 20%, and the top income tax bracket will be lowered from 39.6% to 38.5%. This will allow individuals to keep more money they earn which will grow the economy, but what will become of the deficit?

 

The Secretary of Treasury, Steve Mnuchin, has repeatedly said that the tax reduction will pay for itself with the additional wealth created. This cliche sentiment has become ubiquitous among those that fantasize over tax breaks. Although I am personally fond of economic liberty, I also realize that government cannot take in less than it spends. These tax breaks will allow for more private sector investment to grow our economy, but allowing debt to accumulate will only result in economic stagnation from inflation.

Unemployment is expected to shrink due to the new legislation. When the government reduces its influence in the market, competition then begins to lower prices and allow more people to find work. Regulation often doesn’t work as expected either. Once inflation forces people into higher tax brackets they then reduce their taxable income. They accomplish this with a myriad of different methods such as moving trade to the black market, working less, spending more money on accountants, and most famous of all: offshoring.

The United States currently has one of the highest corporate tax rates in the world. This forces many potential companies to relocate in order to avoid the high regulatory burden. A common misconception associated with offshoring is that businesses move offshore in order to exploit workers in the third world. However, this conceited notion cannot stand up to rational scrutiny. Offshoring leaves some with a bitter taste because it is often associated with sweatshops in poor southeast Asian countries. While this is sometimes the case, workers in the third world are often close to busting down the door in order to fill out an application. Corporations such as Nike pay their workers in Vietnam double the average annual income. While conditions still leave much to be desired from our standpoint they see it as the opportunity of a lifetime. These opportunities are only available to these people because of the low amount of red tape. As Ludwig Von Mises once said, “Capitalism breathes through loopholes.”

Another great benefit of lower tax rates is more American jobs. President Trump promised Americans that jobs will return. Lower taxes and regulations will move the supply curve to the right. Thus, incentivizing more people to enter the market. With our exorbitant taxes, it is no surprise we have lost jobs. If the marginal cost to employ someone exceeds the benefit then that person will most likely remain unemployed. Moreover, these burdens upon businesses are shifted upon the consumer with higher prices. Corporations actually pay more money complying with regulation than they make in profits. Lowering the tax burden will incentivize businesses to put more money into production and employ more domestic workers.


Rappeport, Alan. “Ahead of Vote, Promised Treasury Analysis of Tax Bill Proves Elusive” The New York Times. Nov. 30, 2017.

Goldman, Henry. “Mnuchin, Ivanka Trump Pitch Tax Plan’s Benefits for New Jersey.” Bloomberg Politics. Nov. 13, 2017.

Crews, C.W. “Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State. Competitive Enterprise.

Nivola S, Pietro. “Inside Outsourcing: More Bad News from Business Regulation?” Brookings Institute. Nov. 1, 1996.

 

Senate GOP Tax Plan: What We Know

By Harrison Lavelle | USA

Not long ago, the Senate GOP released its 400+ page Tax Bill to the public eye. 71Republic dived in to tell you what the Tax Plan means for you and your family. Let’s start with some background, with little to no major legislative accomplishments for Sen. McConnell (R-KY) to hand to President Trump (R) in recent months, and little to nothing but stagnation in the House, the Senate bucked the system and announced its own tax plan. Let’s dive into the bill and what it means for you in terms of legislation.

The main hallmark of the GOP Plan is its massive cuts for tax-payers across the board and a set maximum rate of 38.5% for citizens making more than $1 million dollars a year which is 1% lower than the 39% rate in the House Bill. However many Leading Liberal Economists feud with the Conservative Senators arguing that the Tax Plan’s shrinking of brackets from 7 to 3 will lead to the exposure of new loopholes in the tax system allowing the rich to profit and the income gap to grow, however at the same time, many politicians, even a Democratic Senator, Sherrod Brown (D-OH), are citing the plans possible success through trickle down economics. The President himself addressed Democrats in the Senate today with, “(the) rich people get hurt in this bill.”

“the rich people get hurt in this bill” – Donald J. Trump (R-NY), 45th President

According to Business Insider, the spokesperson for Sen. Brown stated that the Senator agreed with portions of the plan and would consider supporting a bi-partisan form of it, or at least some aspects of it. The debate on the maximum rate and across the board cuts boils down to whether or not you believe in Trickle-Down economics or not, so we’ll leave that up to you. Besides the lower cap for high-income citizens, the plan also includes a much less popular addition, the cancellation of mortgage/in-property tax deductions for state residents. For states in the Northeast, such as NJ, NY, CT, MA, RI, PA, etc… the loss of property tax reductions would be devastating. Due to the fact that property taxes in those states range from $13,000 to $25,000/year depending on property size and/or cost. GOP lawmakers tried to back up the change but it came to little avail. The plan also delays corporate tax cuts which ultimately lead to an inadvertent and unnecessary tangent from Trump’s tax agenda. The plan should promote strong values of capitalism and a mix of supply-side and trickle down economics for the American People, but in its current form, it simply falls short on so many quotas that it does not hit that goal.

Currently, the plan is on the Senate floor debate and reform before its potential passing. As you know the GOP holds a 52-48 Majority in the Senate, and it needs 51 to pass the bill (or 50 with the VP) if the three liberal Republican senators (Collins, McCain, Murkowski) vote against the bill then it will fail the Senate. The Senate is set to vote on the controversial new tax bill in the coming weeks, will it fare better than the House Tax Bill? Only time will tell. If Tax Reform doesn’t come, It could have bad repercussions for the GOP in the Senate in 2018. The GOP needs a win, and McConnell believes this is what the party is looking for. Only time will tell the fate of this new bill.