Mt. Vernon Register-News

Opinion

February 28, 2014

Dead on arrival

In a properly functioning Washington, the tax reform plan unveiled Wednesday by House Ways and Means Committee Chairman Dave Camp, R-Mich. would kick off a major debate over how to fix the federal government’s inefficient system of revenue collection. Mr. Camp proposes to overhaul both the corporate and individual tax codes, based on the principle that lower rates should be applied to a broader base of income — that is, one that is purged of many loopholes and deductions that litter current law. The Camp plan would reduce the corporate rate to 25 percent from a maximum of 35 percent and replace the seven marginal rates for individuals with three: 10 percent, 25 percent and 35 percent.

The congressional Joint Committee on Taxation scores the plan as essentially revenue-neutral; that is, it neither increases nor decreases the federal government’s total tax take. Its most innovative feature is an expansion of the standard deduction, which would take away any incentive to claim tax breaks from all but the wealthiest 5 percent of filers. For these people, Mr. Camp would trim both the mortgage-interest and charitable deductions. Mr. Camp is admirably specific about other special-interest goodies he would do away with to pay for his lower rates: The notorious special treatment of “carried interest” for hedge fund managers would go, as would the break for corporate jets that President Obama has frequently targeted.

In the actual Washington, alas, Mr. Camp’s proposal has basically no chance of passage, or even of being acted upon this year.

Much of the blame for that belongs with the leaders of his party, who smell victory in the November elections and don’t want to do anything controversial — such as committing themselves to an actual positive agenda — that might put that prospect at risk. Instead of praising their fellow Republican’s plan, House Speaker John A. Boehner, Ohio, and Senate Minority Leader Mitch McConnell, Ky., threw cold water on it.

Text Only
Opinion
  • Remember the pledge Editor:The county board chairman is not being factual with his recent comments concerning the Public Safety Tax Pledge made by the 2004-2010 County Board.First of all, the debt we were facing was caused by the foolish actions of nine board members of

    July 31, 2014

  • Back to the future for death penalty? The surreal national debate over the death penalty reached a climax of sorts July 23 in a prison execution chamber in Florence, Arizona. Double murderer Joseph Wood was put to death by lethal injection shortly after his lawyers went to the Supreme Co

    July 31, 2014

  • Reduce property tax Editor:The regular July meeting of the Rend Lake Conservancy District Board of Trustees is always interesting, and this year was no different. It is at this meeting that the board makes the annual tax levy for the district. Like every year, the debat

    July 31, 2014

  • Away from the tyranny ‘Without courage, we cannot practice any other virtue with consistency,” the late poet Maya Angelou reflected in an interview with USA Today in 1988. “We can’t be kind, true, merciful, generous or honest.”What a poem Angelou might have written about

    July 31, 2014

  • No Headline Provided House and Senate conferees have agreed on a $17 billion bill to address the scandal over poor health-care service at the Department of Veterans Affairs. The legislation is now on a fast track to pass Congress before its August recess, showing that Re

    July 31, 2014

  • Shackled by 'dead men' In theory, the American people’s elected representatives decide every so often how much to tax the public and how to allocate the revenue among various priorities, both short-term and long-term. In practice, however, Congress and the president have a

    July 31, 2014

  • Close the tax loophole that sends US corporations overseas Since we last overhauled our federal tax code, in 1986, countries around the world have lowered their tax rates, leaving the United States with the highest corporate tax rate in the developed word. At the same time, the system has become full of inef

    July 29, 2014

  • Israel and the U.S.: Whose survival instinct is stronger? There’s something darkly coincidental in the fact that the latest weapon to be deployed against the survival instinct of both Israel and the United States is an alleged “heartlessness” when it comes to children. The people of Israel are castigated in

    July 29, 2014

  • College cost isn't big problem for poor students To judge by this summer’s banner policy proposals, the most important question for higher-education reform right now is giving students easier access to loans. But evidence from Canada suggests those changes won’t address the greater need: Getting mo

    July 29, 2014

  • Ducks, geese a blessing I would like to respond to the “Geese and ducks causing problems in Veterans Park” article that was published in the Mt. Vernon Register-News on July 16, 2014. I must share that I do understand that at times there have been a great number of the Cana

    July 29, 2014

Twitter Updates
Facebook
Stocks