My thoughts on Jeb Bush's tax plan:http://www.wsj.com/articles/my-tax-overhaul-to-unleash-4-growth-1441754195
Agreed: Simpler tax code with fewer brackets, exemptions, deductions. End recognizing earnings overseas to escape taxes and corporate subsidies. End the carried interest loophole.
Putting aside the implication that none of this existed before 2008, and that Jeb hasn't personally benefited from his father's influence on the tax code far into the past, here's my take on the parts I disagree with:
- About the cheap shot at Barack Obama raising taxes; it's expected, but my personal experience is that my income has increased and tax rate decreased since the beginning of the Obama administration. Perhaps I'm the only one? I doubt it.
- You'll have to convince me that ending worldwide taxation of corporations headquartered in the US is anything but a license to move US jobs and capital overseas more easily than ever before without needing those pesky overseas corporations, subject to local laws.
- The AMT is important and should be expanded. Even if you're able to simplify the tax code without picking up new loopholes, congress isn't going to let it sit still for long.
- Immediate deductions for capital expenditures ensures many more employees can be replaced by technology faster than ever before. Efficiency gains don't even usually correlate with higher employment, and neither with higher wages.
- "I did it in Florida!" You were able to borrow heavily and shift costs to property taxes, and the overall rising tide of the mortgage bubble in the country during your stint as governor certaintly didn't hurt. The federal government is also providing base level funding for education and providing a backstop for other services.
Overall I do welcome a reform of the tax code. There are a lot of Chamber of Commerce agenda items mixed in here that IMO hurt overall. Capital depreciation takes place over time in an attempt to model real world uses of big things such as tractors, dump trucks and buildings. Imagine how much more predatory private equity can be when there's an entirely new tax loophole encouraging big speculative purchases to offset taxes.