How did Donald Trump qualify for a middle-class tax break?
Aaron Epstein, or his headline writer, asks, How did Trump qualify for a middle-class tax break?
The answer is simple: because Donald Trump can afford more and better lawyers than the middle-class.
Or, as the accountant they interviewed for the article, Joe Perry, said,
“A person like Trump has options for reporting income that most people don’t have,” Perry said.
Not necessarily big news, but it came at the same time as USA Today reports that 27 giant profitable companies paid no taxes. It’s a boring article. Most paid no taxes either because they recently lost a lot of money and are crawling out of a financial hole, or because they made much of that profit overseas and left it there. Technically, both of those options are open to individuals—including the middle class—but, as Perry might say, giant profitable companies have options that most people don’t.
The reason that they have those options is because the tax code is so incredibly complex. It rewards people who can afford to hire accountants and lawyers who are experts in the tax code. The solution to that is pretty simple: simplify the tax code. Get rid of the arcane subsidies.
A relative of mine posted the USA Today article to Facebook. Normally she’s pretty left-leaning—she supports Sanders, for example—but this is an issue that divides along beltway lines—that is, inside and outside—not along partisan lines. Everyone who pays taxes would like to simplify them; everyone who creates taxes would love to make them more complicated. I wrote something like this in the comments:
Yes, giant companies can afford to hire tax specialists to take advantage of our incredibly complex tax system. Complex tax laws make the system easier for giant companies to game. That’s why good reformers, such as Carly Fiorina and Ted Cruz, are trying to radically simplify our tax laws. Simpler tax laws aren’t as easy to game, and further, when they are gamed, it is easier to see. It’s easier for the average person to understand a three-page tax law than a 3,000-page tax law.1
That’s not exactly what I wrote. Shortly after I wrote it, she deleted the share, and I didn’t keep a copy of my comment.
Sanders and Trump are two sides of the same coin in this election. People who support them will claim to support policies, but they really just support the person. If the policy changes, they change their support for the policy, not their support for the person. When it turned out that she can either support simplified taxes that keep the playing field fair, or she can support Sanders and a big government that plays favorites and encourages giant profitable companies to remain giant profitable companies, she went with the latter, and deleted the article.
It’s the Democratic Socialist way to work with a few giant companies instead of lots of small companies. A vibrant marketplace is very difficult for a central government to control. It’s much better, in their view, to have a few very big companies that the government can negotiate with to get their way.
It’s bad for workers, who have fewer choices about where to work; and it’s bad for consumers, who have fewer choices about what to buy. It sucks for people who want to start up new, innovative companies. And it really sucks for the people whose live are made better, and even saved, by those lost innovations. But it’s great for giant companies, who have less competition both in hiring and in selling.
In response to Election 2016: Another fine mess you’ve gotten us into.
Or a 70,000-page tax law, depending on who you believe.
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- 27 giant profitable companies paid no taxes: Matt Krantz at USA Today
- “There are 27 companies in the Standard & Poor’s 500, including telecom firm Level 3 Communications (LVLT), airline United Continental (UAL) and automaker General Motors (GM), that reported paying no income tax expense in 2015 despite reporting pre-tax profits, according to a USA TODAY analysis of data from S&P Global Market Intelligence.” (Memeorandum thread)
- Bernie Sanders’ Anti-Foreign Crankery: Daniel Bier at Foundation for Economic Education
- “A Vesuvius of Tribalism and Economic Illiteracy” (Hat tip to Sarah Hoyt at Instapundit)
- How did Donald Trump qualify for a middle-class tax break?: Aaron Elstein
- “It’s strange that a billionaire would apply for a $302 tax benefit and, moreover, that he would take it,” said Martha Stark, a property-tax expert and former New York City finance commissioner who is now a lecturer at Baruch College. (Memeorandum thread)
- The seen and the unseen in Detroit: Kevin D. Williamson at National Review Online
- “Because most of us lack sufficient imagination, we do not understand what the price of that was. The price isn’t just bailouts and layoffs and factory closings, as painful and convulsive as those have been in Detroit and throughout the industrial communities that inflicted similar problems upon themselves. No, the real cost—the literally incalculable cost—is the lost value that would have been created had all that capital been liberated and put to its best use. We have forgone generations’ worth of compounded returns on investments that we should have made but did not. Another way of putting that: It is far easier to solve the problems of 2016 starting in 1950 than starting in 2016.”
- Strangling the iPhone of health care
- We have no idea what great improvements in health care we have strangled through our current system of government regulations, subsidies, and tax incentives.
More Bernie Sanders
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- Due to global warming, rampant capitalism, the world has too much food and too many people. Overweight outnumber underweight for first time since God talked to Moses. Presidential candidate Bernie Sanders calls for institution of Soviet food lines.
- Ted Cruz: The anti-extremism candidate?
- Do we really have two political extremes, or do we just have two very close sides that talk extremely different? Politicians can combat the increasingly extreme rhetoric in politics by, first, doing what they promise, and promising what they can do; and, second, by using rather than bypassing the legislative process that the founders designed specifically to dampen extremism.
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- Sure, now that Donald Trump is threatening to take the White House, the left cares about imperial presidents. But unless they’re willing to oppose President Obama’s executive orders, whatever Donald Trump does is their fault.
- Why is the media saying Sanders lost the debate?
- Bernie Sanders spoke an important and inconvenient truth about socialism when he came to Hillary Clinton’s defense at the debates.
- New York Times claims even moderate Democrats socialist
- According to accusations by the New York Times, Democrats have moved so far to the left that even moderate Democrats are socialists today.
More President Donald Trump
- Trump, tariffs, and the war on American workers
- Why do so many American workers support Trump so strongly against the wishes of their union leadership? Partly because only Trump recognizes that we’re in a war targeting American workers.
- Walk toward the fire
- Trump reassures crowd after assassination attempt fails.
- Trump and the January 6 defendants
- There appears to be a concerted effort on conservative forums to blame Trump for not doing anything for the January 6 prisoners and defendants. Is it true?
- Betrayal is bad advice
- It makes sense that the beltway would want to depress voter turnout by working class voters. It’s a mistake for Trump supporters to do so.
- Who is Trump running against?
- If Trump runs against Biden, he’ll lose, just like he did in 2020: by getting more votes but fewer ballots. It looks like Trump understands that. He’s not running against Biden. He’s running against the Democrats and Republicans who put Biden in power.
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More taxes
- Growth does not pay for itself
- Growth that doesn’t pay for itself is cancerous growth. It isn’t the growth of population that gets more expensive, but the expanding grasp of government.
- Tax me to the church on time
- The left wants to take the policies that are consolidating small businesses into larger ones, and use them to consolidate small churches into larger ones. They want to leverage milker bills and rent-seeking in religion.
- Income tax vs. national sales tax
- There is no such thing as a fair tax. All we can do is try for the simplest, most unobstructive tax we can find.
- Twelve cookies on a plate
- There are twelve cookies on a plate. The left says that they can feed the poor by taking that rich guy’s cookies away, and leaving yours alone.
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- The most important reform is the reform that makes the reformer obsolete.
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