In the end, success or failure of the GOP Tax Reform depends on five key prospects:
(1) Whether or not the effort (the new/modified Tax Code) sufficiently incentivizes Business to invest in domestic capacity. Which,
(2) will then triggers, it is hoped, a massive surge in domestic economic activity including employment and wage increases. The result of which,
(3) it is believed will generate an incoming flood of Tax Revenues which can then be used to,
(4) theoretically fund increases in infrastructure and military spending with social programs needing little funding adjustments given, it is presumed, that those now on the dole will all be returning to work in the re-energized economy soon to be full of higher-wage employment. And,
(5) the success of this will be so magnificently profound that there will be an excess of revenue available to pay down the Federal Debt; really!
Ironically this self-generating algorithm does indeed have a proven history at least until the wholesale globalization of the U.S. (pre-1970’s) and the adaptation into the “making the world safe for democracy” at the point of a gun became a National charade and so, unfortunately, the perfecting of this “self-generating” process was never fully developed. Instead, the public was steadily programmed into a retrograde state of division and self-indulgence and representative government gave way to financial interests.
The great weakness built into “The Tax Cuts and Jobs Act” (TCJA) is simply this: There is no requirement for Corporations to do anything different than they’ve been doing in exchange for the reduced rates and plenary of other gifts they are now to receive!
PLUS, hidden within the Bill is a provision that removes the existing Code’s tax on Corporate Worldwide Income and if the whole premise of the TCJA flops the Corporate Tax Reductions will still remain in place while the token Individual reductions relapse back to the 2017 rates.
As in the past I would expect there to be what is commonly referred to as a “Technical Corrections Act” prepared so as to augment, correct or adjust provisions of or anomalies within a recently passed Bill; this approach will allow for the activation of a provision that makes permanent a fully tax-free (from all Federal and State Taxes including Social Security and Medicare/Medicaid) exemption for/of the first $150k (inflation adjusted) of Household Income and a provision that makes the new Corporate rate applicable to only those entities that can prove that seventy-five percent of their taxable income is domestically sourced.
Let’s be clear! Without any provision that obligates participation, and given the rush to globalism along with the plenary of corporate benefits it provides, does anyone expect current Business Practices to suddenly change given there’s no compelling reason for them to do so?
The fact that no one, and I mean NOT A ONE, on the opposing side of the dung-heap dare mentions or tender specific opposition perfectly illustrates that the Congress is clearly not populated with thinking people at least none that have any measurable sincerity where the interests of the American People are concerned.
So unfortunate that this is the best Congress is willing to do particularly when there is so much more that can be done.
Curtis C. Greco, Founder