So, what is in the final tax bill? Will you see a significant tax cut?
In this episode, we go through the common myths about the tax bill and update the listeners on the latest changes to the bill. On net, it looks like they fixed the initial problems so that almost everyone will get a real tax cut. Is this the ideal bill that truly restructures our system and ends the progressive code? Of course not. We game out a couple of better proposals that would fundamentally change the system for the better or how to make this tax cut more meaningful.
Key quotes
The amount to be contributed by each citizen will in a degree be at his own option, and can be regulated by an attention to his resources. ... It is a signal advantage of taxes on articles of consumption that they contain in their own nature a security against excess. ... If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them. Impositions of this kind usually fall under the denomination of indirect taxes, and must for a long time constitute the chief part of the revenue raised in this country. Those of the direct kind, which principally relate to land and buildings, may admit of a rule of apportionment. ~ Alexander Hamilton, Federalist #21, making the case against direct federal taxation
Show links
Blowing up major myths on the tax bill
Tax Foundation chart: Most people don’t pay a lot in federal income taxes