Trump Tax Talk: "It would be a dream of mine to put H&R Block right out of business."
As the political campaigns start heating up, so does the campaign rhetoric. In an interview on MSNBC’s “Morning Joe”, Donald Trump offered the following, “It would be a dream of mine to put H&R Block right out of business. They don’t deserve to be in business, frankly.”
Donald Trump must not realize that in addition to HR Block, there are 500,000 independent (and hard working) tax professionals who make a living helping US taxpayers plan and comply with the US tax code. The other issue that these anti-progressive tax crusaders are glancing over is what happens to home prices, charitable donations, the Federal Budget and the 1/3 of the population who currently have a negative tax rate if an alternative system is implemented. Much of the population will see a huge tax increase if an overhaul takes place, including the middle class.
The Washington lobbyist are very busy. There is a reason the area around DC is booming. As the Federal government gets larger and larger the fuel to fund these projects will have to come from someone. Trump added “you can say fair tax, you can say flat tax, you can say 100 different taxes, or you can say simplification.” The reason for the complexity of the tax code is the special interest groups. So the battle Trump will be fighting will be with the lobbyist and Congress itself.
The Tax Policy Center recently broke down Texas Governor Rick Perry’s Flat Tax proposal and noted that when compared to the current system, Rick Perry’s proposal would bring in $995 billion less in calendar year 2015 compared with current law, roughly a 27 percent cut in total projected revenue. Rick Perry was quoted as saying that “lower taxes & less regulation made Texas a job leader.” What a 27% cut in tax receipts would mean to the economy would make Mr. Perry’s job very challenging to start.
The issue than becomes what programs will be cut or repealed to even out the loss tax revenue. But, those are topics that will debated for years on end. Right now, attacking the IRS and the tax code seems to be a popular political tactic that keeps grabbing headlines.