Congressional Republicans (and Democrats) Blind on Tax Reform

First, eliminating the state and local tax (SALT) deduction makes sense because it encourages those governing entities to raise spending, knowing residents can deducts it at the federal level. So, curtailing amounts to a tax increase. The deal is to reduce the amount of SALT deductibility and also lower the income tax brackets for all income brackets including the highest one.

Second, politicians in both parties take the side of the employer/producer in this debate. The federal tax code includes a deduction for “educators”, meaning teachers. They are not the consumer or employee or individual.

Third, there is no assurance that a small business owner or anyone else who gets a tax reduction will hire employees. They may simply give themselves a pay raise.

A broad tax credit for citizens themselves so they can re-train, educate, or otherwise learn new skills are what is needed. Examples are someone who wants to learn how to braid hair, be an electrician, software programmer, or building engineer, learn the nuts-and-bolts of starting a business. There are hundreds of job classifications someone can sift through to find the niche that fits him or her.

Here.

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