I attended a meeting sponsored by Americans for Prosperity at Landerhaven today. Their keynote speaker was Ohio Senator Rob Portman. AFP’s five principles of tax reform are:
- Simple – Lower rates – Fewer Deductions – Eliminate Loopholes, Exemptions, or Deductions
- Efficient – Streamline Revenue Collection – Make it Easier for Families to Manage Finances
- Fair – Eliminate Handouts and Special Favors – No More Government Picking Winners & Losers
- Predictable – Eliminate Complex Tax Formulas – Allow Businesses to Plan Long-Term
- No Burden on Taxpayers – No New Tax Burdens on Americans – No BAT, VAT, Carbon Tax, etc.
Rob Portman was stumping for the new Senate Income Tax legislation. A major goal of this legislation is to try to keep corporations in the United States. The complex tax code and higher corporate taxes are driving the U.S. Corporation out of the U.S. The consulting firm Ernst & Young stated that 4,700 Companies have left the U.S. in the last few years because of the U.S. tax codes. It is estimated that we are losing $2.5 – $3 Trillion in investments overseas.
According to Portman, the Senate Bill is simpler that the House bill. The U.S. economy’s average growth rate for the past 30 years was 2.5%. Without the proposed tax bill, it is estimated to grow at 1.9% per year for the next 10 years. However, with the proposed tax law changes the conservative estimate for the growth in the U.S. economy is 2.3%. (Note: With all the hype about the tax law changes you would think that we would realize more than the average growth for the past 30 years.)
There are two ways to chip away at our 20 Trillion deficit: (1) Restrain spending, (2) Grow the economy. Portman favors growing the economy. (Note: politicians have trouble reducing spending)
There are three deductions that will remain in the new tax code: (1) Mortgage interest deduction, (2) Medical expenses, (3) Property tax deduction – maximum of $10,000 per year.
College tuition is the fastest growing expense in our economy – even higher than medical costs. Tuition increases are 4 – 5 times the rate of inflation. (Note: Have you seen the size of Lakeland Community College lately? I think that there has been some “mission creep” over their original charter, and costing Lake County taxpayers increased real estate taxes.)
It is estimated that the average middle income Ohio resident will realize ~$2,300 in annual tax savings with the new tax law changes.
(Opinion: I was a bit disappointed in the format chosen by AFP. They would not allow any questions that did not deal with the tax issue. It is not often you can speak to a Senator, and I wanted to ask him questions dealing with open borders and the illegal alien issue that is causing Lake County residents tremendous increases in their real estate taxes. However, I guess when you are footing the bill, you can make the rules, but it sure stifles any debate and make the audience feel like sheep.)