Hilbert Morales
EL OBSERVADOR
It’s been over 30 years since the U.S. Congress made a comprehensive assessment of the IRS taxation process. President Trump (who never has allowed his personal IRS 1040 submittals get public scrutiny) and his Administration have not revealed any taxation policy objectives. Comprehensive income taxation is now being addressed because Republican Congress members do not want to face their home congressional district constituents with nothing accomplished during its 2017 congressional session…EXCEPT A FAILURE TO GOVERN THIS AMERICAN NATION IN A MANNER THAT EQUITABLY DISTRIBUTES THE ABUNDANT WEALTH CREATED BY WE, THE PEOPLE. We, who are the ‘GRUNTS’ of this economic system reliably doing the heavy lifting, need to become informed to enable making decisions in our own best interest during the coming 2018 Midterm Election when our votes can be the ‘silver bullets’ which end up (s)electing new elected representatives. Next year, it would be advisable for us GRUNTS to not elect any candidate who has accepted campaign funds from any source which requires being beholden to the special interest source of that DARK MONEY.
‘We, The People’ must understand that we have the power to re-align and re-orient our leaders especially when they have forgotten who is the boss… eventually it is ‘We, The People’. When our democratic processes are crushed beneath the heels of aspiring oligarchs or ground up in the gears of industry and commerce. ‘We, The People’ must insist on traveling the high road using ideals already embedded in the U.S. Constitution and its Amendments. To worldly powers whose days are numbered, ‘We, The People’ must defiantly cry out: “You may be BIG and BAD and SCARY, but ‘WE THE PEOPLE’ see through you clearly despite the many distractions created by your ‘false-facts’.
This commentary is not about what is being proposed by the Ryan-McConnell Tax Reform proposal presented to the House. This Ryan-McConnell proposal does nothing to help working folks to move towards a living wage. It does increase standard deductions for dependents; but it removes the Student Loan Paid Interest deduction along with all qualified medical care deductions and mortgage interest deductions; State Income and Sales tax deductions; etc. In addition, the attacks on the Obamacare (2010 Affordable Care Act) continue along with a proposed $1.8 Trillion reduction targeting Medicare and Medicaid along with the reductions in all programs dealing with human welfare needs.
What is succinctly presented here is WHAT IS NOT ON THE TABLE:
Since Donald Trump, as a candidate, never allowed public scrutiny of his personal IRS 1040 submittals, how are we to determine that his presidency is not benefitting his personal income as well as improving the incomes of relatives (nepotism) and the income of Trump Enterprises, a business empire with holdings in many nations?
Let’s consider three equity issues not ‘on the table’ during this effort to accomplish income tax reform. 1) Since the U.S. Supreme Court decreed that “Corporations are individuals who speak by spending their money, let’s ensure that these “corporate individuals” benefit from these same tax reform proposals which will be applied to us GRUNTS. Why the fear of tax rates applied fairly upon all of Us GRUNTS. NO DOUBLE STANDARDS IN TAXATION ARE ACCEPTABLE!
2) Let’s also ensure that every Corporate Welfare item is fully reassessed objectively. All businesses need to pay some amount of taxes on profits reported. Eliminate all tax loopholes which permit some corporations to pay no taxes at all. After all is said and done, these businesses exploit the natural resources located within this nation as well as use its infrastructural services to conduct its commerce. This nation’s infrastructural elements are capital investments needing to be remodeled and upgraded with current revenues without additions to the existing national debt.
While many social and community welfare programs are being targeted for massive program support reductions, the one category not being scrutinized is CORPORATE WELFARE which has many forms. All corporate subsidies, tax credits, waivers, accelerated depreciation expense write-offs, etc. These all need to become subject to public scrutiny and objective assessment with no exceptions. A sunset schedule must be applied to each one which is continued.
An example: After the 1930’s dust bowl storms, the concept of ‘agricultural fallow land banks’ was developed and administered by the Dept. of Agriculture. Farmland owners were paid annual allowances to not till their farmland for two reasons: 1) create artificial food commodity shortages which would raise market pricing; and 2) ensure that participating farm landowner had an income when no crops were planted. Recently, this fallow land bank policy had unexpected consequences: A farmland owner of farmland being land-banked would not lease that land to a sharecropper because of being paid an annual allowance by the government. The sharecropper wanted to plant rice on land suitable for growing that crop which, had it been planted and harvested, could have been exported to East Asian nations dealing with crop shortages causing famines due to rice crop failures. Today, bulk rice shipped to North Korea would do more good than Trump’s ‘fire and fury’ saber rattling.
This first Ryan-McConnell disclosure of their approach to comprehensive IRS Income tax reform is most significant. Why? Released tax reform proposals reveal corporate tax rates will be reduced from 35% down to 20%. There is nothing for those of us who are GRUNTS. For the ultra-wealthy and corporations, there are tax proposals which amount to legalized transfer of wealth (i.e., legal exchange of wealth without a quid pro quo, the essence of business).
Let’s imagine reduction of business taxes down from 35% in steps of 5% for rates at 30%; 25% and 20%. Several American firms conducting multi-national global commerce have not brought their profits home, but rather, have them deposited in off-shore banks. Let’s negotiate a quid pro quo process (you do this; we will allow or give that). Since we have a CEO expert on the art of the deal, let’s have this nation benefit from that expertise which allegedly made President Trump a non-validated billionaire (remember Trump has not allowed public scrutiny of his personal taxes).
Taxpayers have an obligation to make an annual report of their worldwide income, whether earned domestically or offshore using an IRS Form 8938. This 8938 Form is for an annual disclosure of specified foreign financial assets as required by the Foreign Account Tax Compliance Act (FATCA) which was enacted by the 2010 U.S. Congress to prevent U.S. taxpayers from hiding their wealth overseas. FATCA has significant tax consequences for those U.S. taxpayers who have previously undisclosed foreign bank accounts.
A second report for offshore bank accounts is the ‘Report of Foreign Bank and Financial Accounts’. The FBAR rules require taxpayers to disclose on this annual report whether they have a financial interest in, or signature or other authority over, foreign bank accounts, etc. The IRS may impose substantial civil and criminal penalties for failing to do so.
‘We. The People’ need to know what ‘corporate individuals’ are getting because the same taxation rules must apply to all Americans ensuring parity and equity.
Let’s ensure that all individuals, both human and corporate, are applying the same rules with honesty and integrity. After all, this proposed COMPREHENSIVE IRS TAX REFORM IS ALL ABOUT OUR MONEY BECOMING THEIRS.
Tax revenues are used to underwrite services provided by government agencies more effectively and efficiently than the private sector. Full transparency will ensure that we all are paying our fair share of taxes to enable our government agencies to be capable of delivering public services to constituents…both individuals and businesses. This is only proper and fair.
‘Small Government’ desired by conservatives simply is unreasonable. Small government enable any scofflaw to do things without accountability and responsibility…an outcome of objective regulations, monitoring, and establishment of reasonable standards. The Trump Administration has already provided all Americans with a good view of what damage can be done by a very few. Let’s accomplish what is possible with a new IRS Comprehensive Tax Reform 2017.
