Paving the way for Trump's tax reform

October 9, 2017

Last week, the Republican House passed a 2018 budget resolution largely along party lines. This paves the way for President Trump’s tax reform plan, the largest overhaul of the tax code since Ronald Reagan.

Democrats who voted against the budget resolution predictably blasted the Trump plan as “tax cuts for the wealthy and big corporations.” Their cries that it will increase the deficit and the national debt might be a bit more convincing if during the time when they were in power, they hadn’t run the deficit up to a trillion dollars or nearly doubled the national debt to $20 trillion. Or for that matter, if they hadn’t let years go by without even passing a budget, which is Congress’ most basic responsibility

During the debut episode of my new TBN show this weekend, I discussed the Trump budget plan with economist John C. Goodman, one of the fathers of such innovations as Health Savings Accounts, IRAs and 401(k)s. We talked about how the debt is now so large, we can’t dig out of it with more taxes or spending cuts. The only way to get a handle on it is to grow the economy, so that there are more workers making more money, which increases tax revenues organically. We pointed out that this used to be common wisdom accepted by both parties, and was the foundation of tax cuts that jump-started the economy under both Presidents Kennedy and Reagan.

We also covered the lie that cutting corporate tax rates is a “giveaway” to big corporations. In the first place, most corporations are small businesses. Secondly, corporations don’t “pay” taxes; as a business expense, their cost is passed along to consumers, so all of us pay them in the form of higher prices when we buy goods and services. Third, we have the highest corporate tax rate among all leading nations, and it’s keeping corporate cash parked overseas instead of allowing it to be spent here in America on expansion, which means hiring more workers, and hence, more income taxes to the government. Finally, it’s very revealing of the mindset of today’s liberals that so many describe a tax cut as a “giveaway,” as if all your money belongs to the government and if they let you keep a little more of it, it’s a “gift.”

But we’ve seen this movie before: the Republican House passes something that goes to the Senate to die. We’re already seeing signs that even if Trump’s tax plan makes it through the Congressional sausage grinder, it will look nothing like the animal he sent them. Maybe it would be wiser to break it up into pieces, so that notoriously recalcitrant GOP Senators couldn’t once again say, “I agree with 99% of it, but that one percent offends my principles” and kill the whole thing. That’s happened too many times, even with such bedrock campaign promises as repealing and replacing Obamacare. If they can’t even get rid of something as universally hated as our current unfair, unintelligible tax code, then they had better brace for the worst hurricane so far to hit them during the 2018 primary elections.

PLEASE LEAVE ME A COMMENT BELOW.  I READ THEM!

Comments 1-5 of 35

  • Lisa Chambers

    10/14/2017 10:37 AM

    I didn't hear anything about the FairTax in your interview with Pres. Trump. I thought we had a real chance of getting it passed since we at least had a Vice President who supports the plan. (Unfortunately, that's the closest we've come so far, since we didn't get Pres. Huckabee in 2008.) But since Pres. Trump is supporting another tweak of the income tax instead of real reform -- like Reagan did in the '80s -- it will probably be another 30+ years before they address tax reform again. In the meantime, the tax code will grow again and we'll be back to where we are now; so this "tax reform" might be a step in the right direction, but Congress will once again turn back instead of continuing in the right direction. Only real tax reform can prevent this from happening again. Do you know why Pres. Trump does not support the FairTax?

  • George A. Phelps

    10/12/2017 11:33 AM

    Hello Governor Huckabee,
    One of the key ingredients that is missing in this country is Common Sense!! It is just common sense that putting more money into the hands of the citizens grows the economy, not putting more money into the hands of government!! Common sense and history proves that without any question.
    Progressivism is an ideology that lacks the key ingredient of common sense. It has taken over our country with the scare of political correctness, fear and more government power, control and dominance over the people.
    If we don't defeat this awful philosophy of the Progressives our great country is doomed to go the way of nations that have embraced Socialism, Communism and Fascism ergo Russia, Germany, France etc.
    I am a Conservative Constitutionalist and have written many essays on the importance of the Constitution and Capitalism and the free market.
    Thank you for your service to our country!
    George Phelps (Decorated Korean War Combat Vet)
    League City, Texas

  • Kay Martens

    10/12/2017 07:33 AM

    You are exactly right, piece by piece!!!

  • Randy Butler

    10/11/2017 01:13 PM

    Governor Huckabee, I believe it is to late to talk about growing the economy. Sad to say most Americans no longer would like a JOB. Economic growth means, entrepreneurs starting businesses, or established business expanding, both require workers. There are not enough people in 300 million Americans willing to take a JOB. This equals not possible to Grow our American Economy. Sad to Say.

  • Carolyn Bell

    10/11/2017 12:27 PM

    I love to hear your comments on todays issues I have your news letters on e-mails & I try to read them on facebook keep up the good works one of these days I hope to take the Israel trip with you

Paving the way for Trump's tax reform

October 9, 2017

Last week, the Republican House passed a 2018 budget resolution largely along party lines. This paves the way for President Trump’s tax reform plan, the largest overhaul of the tax code since Ronald Reagan.

Democrats who voted against the budget resolution predictably blasted the Trump plan as “tax cuts for the wealthy and big corporations.” Their cries that it will increase the deficit and the national debt might be a bit more convincing if during the time when they were in power, they hadn’t run the deficit up to a trillion dollars or nearly doubled the national debt to $20 trillion. Or for that matter, if they hadn’t let years go by without even passing a budget, which is Congress’ most basic responsibility

During the debut episode of my new TBN show this weekend, I discussed the Trump budget plan with economist John C. Goodman, one of the fathers of such innovations as Health Savings Accounts, IRAs and 401(k)s. We talked about how the debt is now so large, we can’t dig out of it with more taxes or spending cuts. The only way to get a handle on it is to grow the economy, so that there are more workers making more money, which increases tax revenues organically. We pointed out that this used to be common wisdom accepted by both parties, and was the foundation of tax cuts that jump-started the economy under both Presidents Kennedy and Reagan.

We also covered the lie that cutting corporate tax rates is a “giveaway” to big corporations. In the first place, most corporations are small businesses. Secondly, corporations don’t “pay” taxes; as a business expense, their cost is passed along to consumers, so all of us pay them in the form of higher prices when we buy goods and services. Third, we have the highest corporate tax rate among all leading nations, and it’s keeping corporate cash parked overseas instead of allowing it to be spent here in America on expansion, which means hiring more workers, and hence, more income taxes to the government. Finally, it’s very revealing of the mindset of today’s liberals that so many describe a tax cut as a “giveaway,” as if all your money belongs to the government and if they let you keep a little more of it, it’s a “gift.”

But we’ve seen this movie before: the Republican House passes something that goes to the Senate to die. We’re already seeing signs that even if Trump’s tax plan makes it through the Congressional sausage grinder, it will look nothing like the animal he sent them. Maybe it would be wiser to break it up into pieces, so that notoriously recalcitrant GOP Senators couldn’t once again say, “I agree with 99% of it, but that one percent offends my principles” and kill the whole thing. That’s happened too many times, even with such bedrock campaign promises as repealing and replacing Obamacare. If they can’t even get rid of something as universally hated as our current unfair, unintelligible tax code, then they had better brace for the worst hurricane so far to hit them during the 2018 primary elections.

PLEASE LEAVE ME A COMMENT BELOW.  I READ THEM!

Comments 1-5 of 35

  • Lisa Chambers

    10/14/2017 10:37 AM

    I didn't hear anything about the FairTax in your interview with Pres. Trump. I thought we had a real chance of getting it passed since we at least had a Vice President who supports the plan. (Unfortunately, that's the closest we've come so far, since we didn't get Pres. Huckabee in 2008.) But since Pres. Trump is supporting another tweak of the income tax instead of real reform -- like Reagan did in the '80s -- it will probably be another 30+ years before they address tax reform again. In the meantime, the tax code will grow again and we'll be back to where we are now; so this "tax reform" might be a step in the right direction, but Congress will once again turn back instead of continuing in the right direction. Only real tax reform can prevent this from happening again. Do you know why Pres. Trump does not support the FairTax?

  • George A. Phelps

    10/12/2017 11:33 AM

    Hello Governor Huckabee,
    One of the key ingredients that is missing in this country is Common Sense!! It is just common sense that putting more money into the hands of the citizens grows the economy, not putting more money into the hands of government!! Common sense and history proves that without any question.
    Progressivism is an ideology that lacks the key ingredient of common sense. It has taken over our country with the scare of political correctness, fear and more government power, control and dominance over the people.
    If we don't defeat this awful philosophy of the Progressives our great country is doomed to go the way of nations that have embraced Socialism, Communism and Fascism ergo Russia, Germany, France etc.
    I am a Conservative Constitutionalist and have written many essays on the importance of the Constitution and Capitalism and the free market.
    Thank you for your service to our country!
    George Phelps (Decorated Korean War Combat Vet)
    League City, Texas

  • Kay Martens

    10/12/2017 07:33 AM

    You are exactly right, piece by piece!!!

  • Randy Butler

    10/11/2017 01:13 PM

    Governor Huckabee, I believe it is to late to talk about growing the economy. Sad to say most Americans no longer would like a JOB. Economic growth means, entrepreneurs starting businesses, or established business expanding, both require workers. There are not enough people in 300 million Americans willing to take a JOB. This equals not possible to Grow our American Economy. Sad to Say.

  • Carolyn Bell

    10/11/2017 12:27 PM

    I love to hear your comments on todays issues I have your news letters on e-mails & I try to read them on facebook keep up the good works one of these days I hope to take the Israel trip with you