Wednesday, June 26, 2019
TAX PLANS OF THE DEMOCRATIC CANDIDATES
In light of the Democratic debates tonight and tomorrow night Kiplinger.com looks at the “Tax Plans for All 24 Democratic Presidential Candidates”.
Assuming Trump lasts until 2020, I will most definitely vote for whoever gets the nomination of the Democratic Party. Not because I am a staunch Democrat or liberal but because I am an intelligent and patriotic American. However, I reject the ongoing Democratic theories, included in the tax plans and discussions of these candidates, that the solution to all our ills is to “tax the rich” simply because they can afford it, and that the US Tax Code should be used for social engineering, to redistribute wealth, and to deliver federal welfare and other government benefits.
With one exception, nothing in any of the tax plans or proposals of the Democratic candidates that have tax plans or proposals is new or innovative. Most if not all of them want to expand the Earned Income Tax Credit and to increase tax on higher income taxpayers, either by increasing the top rate of adding a special “wealth surtax”, capital gains, and corporations.
The Earned Income Tax Credit does not belong in the Tax Code. And I do not support punishing ambition, entrepreneurship and success. The way to make corporations and the wealthy pay more tax is not to increase the tax rate, but eliminate all the truly special-interest tax breaks and loopholes.
The one new and innovative item, something I have not seen elsewhere or thought of myself, is from Rep Eric Swalwell, who proposes allowing employers to make tax-free payments toward their workers’ student loans. A good idea.
Of all of the currently 24 whose hats are in the ring, my preference for the Democratic candidate in 2020 is Joe Biden. However, I most strongly oppose his plan to eliminate the step-up in basis for inherited capital assets. Tax policy and financial considerations aside, this would be a nightmare for taxpayers and tax preparers.
FYI, I wrote about my thoughts on tax reform in “The Tax Code Must Be Destroyed”.
Normally, except for 2020, elections should not be decided on one issue alone. The 2020 Presidential election is the rare exception, and it has nothing to do with taxes or any other area of policy. The one and only issue of 2020 is removing Donald T Rump from the White House.