Tuesday's List: Ted Cruz's Seven Tax Reform Goals

If you are a political conservative, Ted Cruz should be someone you pay close attention to, as his take on the various issues is almost always in line with that philosophy.  Tax reform, which Congress is now taking up, is no exception and the junior Texas senator last September laid out seven elements of what he sees as constructive, effective tax reform...I heard him just last week restate it all on the Senate floor.  In making this list, he emphasizes that his guiding principles are growth, simplicity, and fairness.  For Democrats and others more on the left of the political spectrum, that last one...fairness...seems to be by far the most important, and they have long accused the Republicans, Senator Cruz included, of being very, very unfair with their legislative proposals.  And I agree with them to an extent, especially in the way most of the G.O.P. was willing to wreck health care insurance protections for millions just to score a political victory.  But many on the left have a problem recognizing growth as an essential element in a healthy economy...an element that touches upon all of us...and see things in a more static framework, and in terms of the "haves" and "have-nots".  I think that growth is paramount to improving our standard of living and pushes employment and wages upward.  And our national tax policy discourages it to the extent that its corporate tax rate is highest in the world...and Cruz points out a couple of other areas that need change to enable our companies to stay home along with their money.  That's not to say that I don't see a bit of hypocrisy in what Ted Cruz is saying.  For one, pointing out that because other countries levy lower corporate taxes, we should follow their example while at the same time disregarding the fact that most of these also have successful universal health care systems is a bit disingenuous.  For another, when Obama and the Democrats were running things a few years ago, Cruz's one big overriding issue was to reduce the national debt...where is that consideration in his proposals other than a vague implication that overall growth will compensate for lower rates and increase net tax revenues?  That aside, I'm listing his seven ideas for tax reform, some of which I'm inclined to agree with and others that I admittedly don't understand very well.  So, without further ado, here they are, as Rachel del Guidice reported on the conservative The Daily Signal website:

1. A LOW, FLAT RATE.
2. THE ABILITY TO FILE TAXES ON A POSTCARD.
3. IMMEDIATE EXPENSING.
4. A LOW CORPORATE RATE.
5. ENCORAGE REPATRIATION.
6. ABOLISH THE DEATH TAX (ALSO CALLED THE ESTATE TAX).
7. END THE ALTERNATIVE MINIMUM TAX.

Of the above, I strongly believe Cruz is right on #2, #4, and #7.  Our income tax process is way too complicated for the average American and needs simplification.  I've already expressed that I feel we need to bring our corporate tax rate to the same level as that in competing nations.  And the alternative minimum tax discourages hard-working Americans from making "too much" money to avoid falling into this dreaded category, a cruel joke in our tax code. I doubt that getting #1 to ever become law is a moot point as too many people would regard it as being very unfair to those with lower incomes.  As for #6, when you hear the two sides of this argument debating, it almost sounds as if they are speaking about two separate issues, but I'm inclined to see Cruz's argument: for those passing down less than $5.49 million in assets the tax doesn't apply anyway, but many farms and small family-owned businesses are affected by this tax, which threatens their very enterprises should a death occur.  And that leaves #3 and #5: the way Cruz argues for them makes sense, but I need to study the subject and hear the other side to form a reasonable opinion.  In any event, I put Ted Cruz's proposals on this blog not to endorse them, but rather to try and get people thinking more in terms of issues and less of personalities.  We can all easy idolize or despise a public figure, but it takes a bit more mental finesse and discipline to listen to what they are saying without automatically accepting or rejecting everything wholesale just because of which "side" they are on...