Rep. David Camp, has he gone mad?
Rep. Dave Camp, House Ways and Means Chairman, has proposed a 1000-page tax reform plan that would impact basically every American. The summary alone was 200 pages. Politico says the bill has something to upset everyone – manufacturers, the poor, Wall Street banks, governors and deficit hawks.
Top Republicans in the House distanced themselves from it before it was released. John Boehner said he didn’t see the possibility of passing tax reform this year. McConnell isn’t interested either. Democrats like Chuck Schumer expressed strong reservations.
Camp said the average American was ready for a tax code no longer littered with “special interest handouts.” However only one quarter of the 70,000 pages (228 sections) would be eliminated.
Most Americans – 95 percent – would use the standardized deduction, which would be raised under this plan. The mortgage interest deduction would be pared back along with others for those who itemize.
Camp did not shift the tax burden away from the rich or upper middle class in this bill. The plan would eliminate deductions like the “carried interest” tax break used by hedge fund managers.
Camp’s plan would consolidate income tax rates into two rates, with the top marginal rate at 25 percent, down from 39.6 percent, for most earners. He would offset the cost by eliminating deductions and loopholes, and by imposing surtaxes on big banks and the wealthiest taxpayers, according to the hill.
Camp means well. “It is no secret that Americans are struggling,” Camp said in a release. “We’ve already lost a decade, and before we lose a generation, Washington needs to wake up to this reality and start offering concrete solutions and debating real policies that strengthen the economy and help hardworking taxpayers. Tax reform is one way we can do that.”
Camp said it would create as many as 1.8 million new private sector jobs, allow about 95 percent of tax filers to get the lowest possible tax rate by claiming the standard deduction and strengthen the economy and increase gross domestic product by up to $3.4 trillion, without increasing the budget deficit.
This is one more stresser from a government filled with stress-inducing bills.
Democrat Sen. Chuck Schumer said it eliminates the deduction for state and local taxes which means it will be dead on arrival. Democrat Rep. Sandy Levin of Michigan said he’d keep an open mind but he’d have to see how it battles income inequality. Income inequality is the Democrat mantra even though their policies widen the gap between rich and poor.
If there is no possibility of immigration reform because we can’t trust the president, why would we pass a 1,000 page tax reform bill in an election year under this president?
The bill is a gift to Democrats as they try and decide how to defeat Republicans this November.
Ohio Rep and Speaker John Boehner won’t let this come to the floor. Sen. Mitch McConnell of Kentucky said the differences between Democrats and Republicans are too great to accomplish it this year.
I think I could write a one-page bill that would be fair for everyone. I’d call it the fair tax or the flat tax.
Guess what the White House was excited about. The corporate jet tax loophole! With all the miserable loopholes, this is the one Mr. Obama has used repeatedly. It even helped get him re-elected.
He and his Democrat friends have this gift of a tax reform bill to weaponize in time for the 2014 election.
Read about the bill on this link.