To help eliminate our budget/debt problems, the debate includes taxation, increase taxes or decrease taxes the left and right will say respectively. Both will say we have a need for a new tax code, but will not agree on a proposal for a new code. Everyone who manages a checkbook has seen budget problems before and knows how to correct it - reduce expenses and increase income. Everything else we here about this subject beyond these two facts is just noise and should be ignored. The political left and right cannot agree on how to correct this problem. Doing something is also better than doing nothing, which is what this stalemate is giving us now. The left's solution to our problem is to increase taxes on the rich to increase income. Currently the top 20% of income earners pays 80% of the federal tax burden. So do we want them to pay 100%? 110%? 120%? Maybe just write the check every year for the entire cost of government, whatever it is? Clearly this is not the solution. They also consistently disparage the Bush Tax Cuts, as causing income inequality and the deficits we currently enjoy. Yet these tax policies actually reduced taxes at all income levels. Plus, when faced with a chance to end them, the left extended the cuts as a positive factor on the economy. The right wants us to reduce spending and taxes, which is also a poor solution in a recessionary economy. But the truth is we must do both (reduce expenses and increase income), we must do it now and it will not be easy. Untouchable entitlements are the problem and must be restructured. Adding another entitlement, Obamacare, to this mix just makes the problem worse. All the political hot air outside these facts is simply a distraction from the difficult but obvious answer. As to a new tax code - a must. The current tax code is over 60,000 pages long! A 2012 report estimated that it took 6.1 billion hours preparing taxes. What a waste. See the 2017 Income Tax tables for your information.

What is the Border Adjustment Tax?

from The Wall Street Journal,

The House Republicans' plan to upend how the U.S. collects corporate taxes

What is the Border-Adjusted Tax? Republicans are proposing a tax concept common in other countries but novel in the U.S. The idea is "border adjustment." Under the plan, companies wouldn't be able to deduct the cost of imports from their revenue, a move that today enables them to lower their overall tax burden. At the same time, exports and other foreign sales would be made tax-free. The plan would operate like a tax on the trade deficit and raise about $1 trillion over a decade, according to independent estimates, which could help pay for lower tax rates and other provisions.

What Does this Mean for Companies Inside and Outside of the U.S.? Let’s say a small business sells $10,000 of merchandise in a year. The goods cost the company $5,000 and labor for those goods cost $2,000, leaving $3,000 in profit. For purely domestic companies, the border adjustment doesn’t matter. But companies will see changes from the rate reduction, the ability to write off capital expenses immediately and the inability to deduct net interest.

For Companies Importing Goods From Outside The U.S.

A similar business in the U.S. instead gets its raw materials from Mexico. Under border adjustment, the company can't deduct the cost of those imports from its taxable income, a change that will raise its tax bill. Another factor is in play here, which is the value of the dollar.

Economists say the dollar will rise as a result of the change, which could offset the tax increase by making the same imports less expensive. (Some importers say the currency won't shift enough to make a difference.)

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