Today, Mick Mulvaney said something shocking. He declared if the Senate tax cut bill was getting stalled over repealing the individual mandate, then the White House would be okay with killing off that portion.

Huh?

What Republican would oppose the tax cuts specifically because they had the individual mandate repeal attached to them? Can anyone who feels this way really be called a Republican? No. As I noted on RedState:

If there are Republicans in the Senate and/or the House who are objecting to the tax cuts because of killing the individual mandate, it’s time for them to declare they’re Democrats. No Republican, not even the swampiest of the RINOs, could look anyone in the eye and claim they’re part of the GOP if they hold up cutting taxes for the sake of protecting the worst component of Obamacare. Not John McCain. Not Lisa Murkowski. Not even Susan Collins.

Let’s be perfectly clear. True Republicans should favor tax cuts. True Republicans should favor repealing the individual mandate. Neither is debatable nor are they mutually exclusive. If there are fiscal reasons for wanting to keep the mandate, then cut expenses elsewhere. Otherwise, don’t even pretend you’re a Republican if you oppose tax cuts or want to keep the individual mandate.

I’m no fan of the GOP, but I want two things they want: lower taxes and less government in my healthcare. This shouldn’t be an issue and the fact that the White House is already signalling retreat on this aspect of the cuts should be a wake up call for anyone who believes in limited government and fiscal responsibility.

By:  Pat Austin

SHREVEPORT – I haven’t poured through the proposed Republican tax plan but I did get far enough to see that teachers will be losing their $250 per year tax credit should it pass unscathed.

The tax bill proposed by Republican leaders yesterday scraps a benefit that many teachers have come to rely on: the $250 “educator expense deduction,” which can be used to recoup the cost of classroom materials.

K-12 teachers who spend money out-of-pocket on books, supplies, professional development courses, and computer equipment and software for their classrooms can claim the deduction each year, according to the IRS. Health and physical education teachers can also use it for athletic supplies. Counselors, principals, and aides who incurred such expenses can claim the deduction as well. In 2015, Congress extended the benefit indefinitely.

Teachers spend about $530 of their own money on classroom items, according to a 2016 nationally representative survey from Scholastic. In high-poverty schools, they spend about 40 percent more—an average of $672.

As a teacher this irritates me.

I spend much more than that each year on my students to ensure they have the most basic materials necessary for class.  I venture to say that I spend $250 along just on notebook paper and pencils.  Every year before school starts I go online to the misprint pencil place and order four boxes of misprinted pencils and then I go on Amazon and order large quantities of notebook paper.  If I’m lucky these will last until the end of the year.

On top of that I buy boxes of Kleenix, pens, crayons, markers, colored pencils, art paper, and spiral notebooks.

Schools furnish none of these things.

In the past I have even used my personal blog to campaign for classroom sets of books and supplies.

I am fortunate to work for a district that will reimburse $100 of the money I spend on supplies.  That is at least something.

When there are so many areas of waste and so many entitlement handouts these days, why pick on the teachers?  We’re already the lowest paid people on the food chain.

Very disheartening, Republicans, very disheartening.

Pat Austin blogs at And So it Goes in Shreveport.

Here is a link to the full text of President Trump’s tax plan.

The Good

No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes.  This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.

That is a huge improvement over the current corporate tax brackets which tops out at 35%.  That should spur much needed job growth.

No family will have to pay the death tax. You earned and saved that money for your family, not the government. You paid taxes on it when you earned it.

With the death tax so outrageously high, so many businesses are liquidated to pay off the taxes rather that pass on the business to the next generation.  With this proposal businesses will more likely be passed down generation to generation.

Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income.

Lobbyists from large corporations spend tremendous amounts of money to buy members of congress so they can write tax breaks into the tax codes.  These tax breaks favor the large corporations which then makes it more difficult for small companies to compete.  This reduces that problem.

A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate.

How many billions of dollars are horded overseas by US corporations?  Reducing this rate will allow this money to flow back here.  This rate should be kept at ten percent instead of raising it back up.

The Bad

If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – Over 50% –from the income tax rolls.

Already 47 percent pay no federal income taxes while so many of them collect federal benefits such as welfare and food stamps.  This will only exacerbate that situation.  Everyone should pay some income taxes so they feel the pain of having to pay for entitlement.  With much needed economic growth there will be a greatly reduced need for entitlements.

The Trump tax cuts are fully paid for by…Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phase-out and the Pease Limitation on itemized deductions.

Tax cuts never have to be paid for. They eventually pay for themselves by increased revenue resulting from greatly increased economic growth. Increasing the burden on the rich will only wipe out any positive benefits of a reduced business tax rate.  Three cheers for soaking the rich!!! What do they contribute to society?  Maybe they create most of the jobs, create new businesses, and invest in businesses.

With this huge reduction in rates, many of the current exemptions and deductions will become unnecessary or redundant. Those within the 10% bracket will keep all or most of their current deductions. Those within the 20% bracket will keep more than half of their current deductions. Those within the 25% bracket will keep fewer deductions.  Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers.

Once again, shifting more of the tax burden on the rich will only nullify any positive benefits.

Since we are making America’s corporate tax rate globally competitive, it is only fair that corporations help make that move fiscally responsible.

The whole purpose of this tax plan is to increase economic growth which will result in more jobs.  Increasing the burden on corporations, who create lots of jobs, to pay for tax breaks on middle and lower income individuals is yugely counterproductive.

The Ugly

The spineless Republicans in the Senate will most likely not pass this or any other tax reform.

We need a flat tax and reduced spending.

An across the board 10 percent tax rate on every individual and business will unleash tremendous economic growth.   All federal spending will need to be slashed to a level that will result in surpluses large enough to eliminate the debt in a generation.  That is the only way to restore the United States to economic greatness.  Sadly the individuals we keep electing to congress do not have the courage to carry out such a bold plan.  We the people must elect better people.

For those who still don’t get it, and for the benefit of those the president is trying to fool here is a video that explains it all in terms everyone can understand:

Any questions?

Update: I understand the argument that it’s all coming out of social security etc, but as the decision is just how long a cut.

Word is a deal has been made, big mistake but lets see what happens.

As yet another multi-millionaire laments on the taxes he is not paying Don Surber offers a solution:

Now, Matt Damon has a net worth of $65 million and an income of $24 million a year.

If he believes his taxes are too low, I have some advice: donate a few million to Uncle Sam.

People can donate money by sending a check to:

Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782

The money will go to the general fund. It’s tax deductible.

If he wants to pay down the national debt, he can mail a check to:

Bureau of the Public Debt
P. O. Box 2188
Parkersburg, WV 26106-2188

Otherwise, I suggest he keep his thoughts on taxation to himself.

It’s the old Surber Challenge, I sent my $10 so Matt lets see if you can do better.