Publisher's Note: One of the most significant things you can do to promote Liberty is to support our mission. Please make your gift to the 2024 Year-End Campaign today. Thank you! —Mark Alexander, Publisher

November 2, 2017

On Tax Reform, Republicans Define Victory Down

Needing a victory to validate their majorities, congressional Republicans have chosen not to emulate Shakespeare’s Henry V before Agincourt. He advocated stiffening the sinews, summoning up the blood and lending the eye a terrible aspect. The Republicans would rather define victory down.

Needing a victory to validate their majorities, congressional Republicans have chosen not to emulate Shakespeare’s Henry V before Agincourt. He advocated stiffening the sinews, summoning up the blood and lending the eye a terrible aspect. The Republicans would rather define victory down.

What began with a bang of promises of comprehensive tax reform will end with a whimper: The only large change will be to the national debt. Consider a small proposal — repeal of the estate tax. It will be paid by an estimated 5,500 people dying this year, raising about $20 billion — a pittance in the $3.88 trillion budget. Repeal’s significance would be philosophic rather than economic.

In 1975, Phillies pitcher Tug McGraw explained what he would do with his $75,000 salary: “Ninety percent I’ll spend on good times, women and Irish whiskey. The other 10 percent I’ll probably waste.” If you work hard, make a pile, then choose to squander it on dissipations, go ahead, it’s a free country. But try to pass the pile to progeny, grasping government will intervene. Ending the estate tax would extinguish the government’s delusion that it has the duty and skill to prevent the intergenerational transmission of family advantages (of which, money matters much less than transfers of social capital — habits and aptitudes, which government cannot redistribute).

Desperate to propitiate impatient constituents, Republicans say this is no time (actually, there never is a time) to fret about the national debt, which was $9 trillion a decade ago and passed $20 trillion two months ago, having increased 22 percentage points under the Republican president who preceded the present one. House Speaker Paul Ryan says do not worry, “We finally have a president who is willing to actually balance the budget.” Ryan underestimates the president, who has promised to eliminate not just the budget deficit but the national debt in just eight years, without touching entitlements.

Beneath the froth of political discord, America’s granite-like harmony persists. The comparatively superficial discord distracts attention from this bipartisan consensus: We shall have a generous entitlement state and not pay for it. Instead, we shall offload onto future generations a substantial portion of the costs of our current consumption of government. As Nicholas Eberstadt of the American Enterprise Institute naughtily reminds us, during half a century of Republican rhetoric of frugality, 1960 to 2010, entitlement spending grew 8 percent faster under Republican presidents than under Democrats.

In the ninth year of an unusually long expansion, and with the economy near full employment (ignore the dismal workforce participation rate), the budget deficit for the past fiscal year was $666 billion, up $80 billion from the previous year. To partially recoup revenue lost from reduced rates, Republicans reportedly flinched (Florida Rep. Matt Gaetz says his fellow Republicans were “asked to vote for a budget that nobody believes in so that we have a chance to vote for a tax bill that nobody’s read”) from a “border adjustment tax” on imports ($1 trillion in a decade) and now have gone wobbly about completely ending the deductibility of state and local taxes ($1.3 trillion). Republicans might still be contemplating steep reductions in the amounts that individuals can put into tax-deferred 401(k) retirement accounts. This will displease the approximately 32 percent of workers who have 401(k)s, and will worsen the inadequate savings rate of a nation where defined-benefit pension plans are now mostly luxuries for government workers and where almost a majority of people approaching retirement have nothing saved for it. The current median Social Security payment is about $16,000 a year.

When the president said tax reform is “going to be so easy,” he overlooked this fact: The tax code’s baroque complexity that demands radical reform makes the code almost impervious to such reform: Every provision was put there to placate a muscular faction or to create a grateful faction.

Republicans should have heeded Dwight Eisenhower’s axiom: “If a problem cannot be solved, enlarge it.” They should have made the case for large reforms that annoy democratically — almost everyone, simultaneously — but for a large purpose. The aim should have been a revenue system that stops subordinating economic efficiency to social engineering and rent-seeking, thereby maximizing the probability of economic growth sufficient to fund the entitlement state. Such a bold aim requires a commensurately bold argument — for a consumption tax or a carbon tax or a zero corporate tax rate or anything for which public-spirited people might stiffen their sinews and summon up their blood.

© 2017, Washington Post Writers Group

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the Tunnel to Towers Foundation, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.