Archive for the ‘taxes’ Category


The Gordian Knot of Tax Reform

May1

By John Feehery

Paul Ryan by Gage Skidmore 2.jpg

“Paul Ryan by Gage Skidmore 2″ by Gage Skidmore. Licensed under CC BY-SA 3.0 via Wikimedia Commons.

Our federal tax code is one big Gordian knot. It has so many rules and loopholes and deductions that its complexity strangles the growth of the American economy and causes American companies to locate overseas.

When Alexander the Great confronted the original Gordian knot, it took him one mighty blow of his sword to cut through it.

For Paul Ryan, it will mostly likely take two. (more…)

Do Corporate Reform First

Apr15

By John Feehery

Paul Ryan with Barack Obama 02-25-10.jpg

“Paul Ryan with Barack Obama 02-25-10″ by The White House from Washington, DC – P022510PS-0748. Licensed under Public Domain via Wikimedia Commons.

(This originally appeared in the Wall Street Journal’s Think Tank)

“Get your billions back, America.”

That H&R Block admonition–a clever ad campaign–shows the inherent conflict with the Republican Party’s anti-tax philosophy.

For most Americans, April 15 is not a day to pay taxes. It’s a time to get a refund. An industry has sprung up to help Americans spend their refunds even before they have arrived.

This dynamic makes it hard for Republicans to pass comprehensive changes to the tax code, especially for individuals. (more…)

SGR Down. Corporate Tax Reform Next?

Mar26

By John Feehery

John Boehner.jpg

“John Boehner” by Gage Skidmore – Flickr: John Boehner. Licensed under CC BY-SA 2.0 via Wikimedia Commons.

(This originally appeared in the Wall Street Journal’s Think Tank)

If Congress can solve a problem like Medicare’s “doc fix,” lawmakers should be able to address a corporate tax rate that kills economic growth and moves jobs overseas.

Medicare’s “Sustainable Growth Rate” mechanism was part of the Balanced Budget Act of 1997. The idea was to tie the set rate at which Medicare doctors are compensated to economic growth. But health-care costs grew faster than the economy, and to avoid a physician exodus that could threaten the program, every year Congress would pass a temporary “doc fix” adding to the amount paid to the doctors.

Fixing the SGR gives peace of mind to doctors that they can continue to participate in Medicare. It’s good policy and good politics. (more…)

Corporate Taxes Are Too Damn High

Mar20

By John Feehery

Jimmy McMillan Blue 3 2011 Shankbone.jpg

“Jimmy McMillan Blue 3 2011 Shankbone” by David Shankbone – Own work. Licensed under CC BY 3.0 via Wikimedia Commons.

Our corporate tax rate reminds me of New York political figure Jimmy McMillan.

He famously founded the “Rent is Too Damn High” party and ran for Mayor on the platform that his rent was, well, too damn high.

I feel the same way about America’s corporate tax rate. (more…)

Tax Reform and Ireland

Feb5

By John Feehery

Flag of Ireland.svg

“Flag of Ireland” by Drawn by User:SKopp. Licensed under Public Domain via Wikimedia Commons.

I had lunch yesterday with several friends who work closely with the government of Ireland, and the subject turned to the coming elections over there.

Like in the UK, you never quite know when the Election Day will be called, as setting that date is one of the benefits of being in the Majority.

In any event, the smart money has it that the ruling party, Fine Gael, will call the election sometime in 2016, but not too close to the 100 year anniversary of the Easter Rising.

Like all the governments, Fine Gael is most likely to spend more money to stimulate economic growth the closer it gets to the actual election. (more…)

 

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