What is the biggest question we should ask ourselves about tax reform as we watch things unfold in Washington? To me, it’s this: Will we start to see compromises—not by the Democrats, but by the Republicans—for the sake of a victory?
It is pretty obvious that Republicans desperately need to register a legislative win before the end of the year. They have just 30 working days left to get something done. This week, House Speaker Paul Ryan said Republicans need to stick together and “stay united.” I’m sure his use of that phrase was just a slip of the tongue and he meant to say, “get united.”
Because the GOP can’t even agree on where to go to lunch, it seems more and more unlikely they can possibly pass a piece of legislation—unless, of course, it has been watered down to appease the agenda the Democrats have created. No one is better at buying into false narratives than Republicans.
I believe it will be difficult to enact tax reform that will maximize the positive impact on our economy without cutting taxes for the people who pay 70 percent of the nation’s federal taxes.
I don’t know if I would make that a deal breaker in getting tax reform done quickly. But it would seem if the aim is to attempt something that hasn’t been done in 30 years—something that is extremely complex—we should maximize the impact it will have on the economy.
President Trump must sell this plan hard to the American people. He can simply lay out the outcomes of Ronald Reagan’s and John F. Kennedy’s tax cuts to lend credibility to the idea that the benefits will reach across all classes.
Simplification of the tax code alone will be a great benefit for the American people, in every financial bracket. It will certainly create a prolonged impact on economic growth. So, unless they are desperate to see this president fail, how can Republicans logically be divided when it comes to tax reform?
Ohio Rep. Jim Jordan has proposed a very simple way of uniting Democrats and Republicans that would be extremely innovative and is a great idea to solve this problem. Jordan suggested developing an app that is simple and could be downloaded by anyone. Just punch your numbers into the app and it will give you an idea of how much money you would save.
This, of course, would keep Democrats from lying to the American people about tax cuts only “benefiting the rich.” Democrats will have little choice but to quickly choose a strategy that doesn’t revolve around painting a portrait that this plan will not help the middle class. Republicans will have to get behind it, too. Sadly, this plan is likely far too simple for anyone in Washington to adopt. So, we need President Trump to continue to take it to the people.
Still, we are faced with a Senate that desperately needs a win and, as I mentioned earlier, they have only 30 “working” days to get this accomplished. While discussing a health care repeal-and-replace, I wrote several times about the benefits of Donald Trump taking it to the American people. That’s exactly what he needs to do with tax reform.
The reduction of federal regulatory burdens has already acted as a tax cut and helped stimulate the economy—and the stock market. However, that is only the beginning. The effects on bottom lines and corporate earnings will be huge if we can enact tax reform. Simplification of tax codes and lower taxes will be monumental.
Plus, moving on infrastructure expansion, creating a stronger dollar, making fair trade deals, boosting consumer confidence, increasing business investment, strengthening business sentiment, repatriating overseas profits and creating a less intrusive government will provide additional stimulus.
If we take these steps, we will see growth in the economy today and in future generations that has not yet been imagined. America will truly be great again—a strong economic power, with unprecedented support from our allies worldwide.
Tell your representatives that we don’t need compromise or a watered-down tax reform plan for the sake of a political victory. We need a victory for the sake of the American people!