Tax Cut Horizon

By Douglas V. Gibbs
Author, Speaker, Instructor, Radio Host

The Trump administration has a long list of accomplishments during its first year, but major legislation that even impresses the hard left media has eluded the Republicans.  The GOP is so good at defending the ideals of conservatism while they are in the minority, but the moment they have any opportunity to put those ideals into action, they crumble like a bunch of defeated children. Therefore, so far, the big wins have not emerged.

Tax Reform, which includes tax rate reductions and an elimination of many of the deductions that creates preferential treatment for some groups as well as confusion in the tax code, was a part of Trump's campaign promises.  The Republicans have been battling so much among themselves, one wondered if the tax bill would make it to the President's desk by the first of the year.  Now, it is looking like he'll be able to sign the new bill before Christmas. 

The Senate passed the latest version of the bill, and now it is the House of Representative's turn to do the same (UPDATE: The House gave the final stamp of approval Wednesday to a sweeping tax reform package, sending the deal to Trump's desk to be signed after a 224-201 vote.)  If the House does, it is entirely possible that the Tax Bill could be on President Trump's desk as early as today.

The Senate passed it with only one vote to spare, so the House may not take the risk of making any changes.  Inside the bill is the repeal of the Obamacare insurance mandate, and a repeal of the Johnson Amendment that threatens religious organizations and church's with losing their non-profit status if they engage in political discourse.  Nearly all people in the country will enjoy a cut in their taxes, with an exception to those dependent upon deductions in order to avoid paying higher taxes (largely people in the upper brackets).

In a perfect world the progressive tax rates would be eliminated, and eventually so would be direct taxation as we see it as allowed by the 16th Amendment.  However, politics is the game of the possible, and putting the IRS out of business anytime soon is not in the cards.  So, we get what we can get.

One of the key things we must do during the Trump administration is fire up the economy even better than it has been moving and grooving during the last year.  While voters may fall easily for leftist propaganda, they ultimately vote with their wallets.  If an administration takes actions that fires up the economy, like tax reduction, and as a result manufacturing rises and jobs increase in such a manner that even the biased media can't ignore it, the voters will respond and vote in a manner that keeps those in place who are taking actions that places more money in their wallet.  In short, a vibrant economy equals a landslide victory for the Republicans not only in the mid-term election next year, but during Trump's reelection effort in 2020.

-- Political Pistachio Conservative News and Commentary