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Thread: Ron Paul: GOP Tax Plan Increases the Most Insidious Tax

  1. #1

    Default Ron Paul: GOP Tax Plan Increases the Most Insidious Tax

    http://ronpaulinstitute.org/archives...insidious-tax/

    Last Thursday, congressional Republicans unveiled their tax reform legislation. On the same day, President Trump nominated current Federal Reserve Board Governor Jerome Powell to succeed Janet Yellen as Federal Reserve chair. While the tax plan dominated the headlines, the Powell appointment will have much greater long-term impact. Federal Reserve policies affect every aspect of the economy, including whether the Republican tax plan will produce long-term economic growth.

    President Obama made history by appointing the first female Fed chair. President Trump is also making history: If confirmed, Powell would be the first former investment banker to serve as chairman of the Federal Reserve. Powell’s background suggests he will continue Janet Yellen’s Wall Street-friendly low interest rates and easy money policies.

    Powell is an outspoken opponent of the Audit the Fed legislation. In 2015, Powell delivered an address at Catholic University devoted to attacking Audit the Fed. Like most Fed apologists, Powell claims the audit would compromise the Fed’s independence and allow Congress to control monetary policy. However, like all who make this claim, Powell cannot point to anything in the text of the audit bill giving Congress any power over the Federal Reserve. Powell’s concerns about protecting the Fed’s independence are misplaced, as the Fed has never been free of political influence. The Fed has a long history of bowing to presidential pressure to tailor monetary policy to help advance the president’s political and policy agenda.

    The Republican tax cut plan has some positive elements, such as increasing the standard deduction, creating a new family tax credit, eliminating the death tax, reducing the corporate tax rate, and lowering taxes on small businesses. It also has some flaws, such as the “millionaire surcharge” imposed on upper-income taxpayers. This provision reflects a belief that upper-income taxpayers only “deserve” a tax break if reducing their taxes serves the interest of government by increasing economic growth.

    The worst part of the tax plan is that it adopts the chained consumer price index (chained CPI). Chained CPI is a way of measuring CPI that understates inflation’s effects on our standard of living. It does this by assuming inflation has not reduced Americans’ standard of living if, for example, people can buy hamburgers when they can no longer afford steak. This so-called full substitution ignores the fact that if individuals viewed hamburgers as a full substitute for steak they would have bought hamburgers before Fed-created inflation made steak unaffordable.

    Chained CPI increases the inflation tax. The inflation tax may be the worst of all taxes because it is hidden and regressive. The inflation tax is not even a tax on real wages. Instead it is a tax on the illusionary gains in income caused by inflation. The use of chained CPI to adjust tax brackets pushes individuals into higher tax brackets over time.

    Politicians love the inflation tax because it allows them to increase taxes without having to vote for higher rates. Instead, the Fed does the dirty work. Since their creation in 1913, the Federal Reserve and the income tax have both enabled the growth of the welfare-warfare state and the erosion of our freedom and economic well-being. The key to restoring our liberty and prosperity, as well as avoiding a major economic crisis, is reversing the great mistakes of 1913 by repealing the 16th Amendment and auditing and ending the Federal Reserve.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintian an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    You are Ron Paul's Media!

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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  3. #2

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    Thanks Ron for pointing this out. I knew there must be something wrong with it.

  4. #3

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  5. #4

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    See, even Ron Paul understands that cutting taxes without decreased spending is a terrible idea.
    “Maybe I forgot to mention something to you: I don’t believe in queens. You think freedom is something you can give and take on a whim. But to your people, freedom is as essential as air. And without it, there is no life. There is only darkness.” -Zaheer

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  6. #5

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    Quote Originally Posted by PierzStyx View Post
    See, even Ron Paul understands that cutting taxes without decreased spending is a terrible idea.
    Ron Paul never said that cutting taxes without decreased spending is a "terrible idea". In fact, it is something he supports.

    Cutting taxes and spending is an even better idea.
    "He's talkin' to his gut like it's a person!!" -me
    "dumpster diving isn't professional." - angelatc


    "Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul

    "Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."

  7. #6

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    Quote Originally Posted by dannno View Post
    Ron Paul never said that cutting taxes without decreased spending is a "terrible idea". In fact, it is something he supports.

    Cutting taxes and spending is an even better idea.
    To quote:

    The inflation tax may be the worst of all taxes because it is hidden and regressive. The inflation tax is not even a tax on real wages. Instead it is a tax on the illusionary gains in income caused by inflation. The use of chained CPI to adjust tax brackets pushes individuals into higher tax brackets over time.
    Cutting taxes without cutting spending is an old Keynesian trick. It requires a boost in the money supply to pull off. The tax returns people get are then used to buy more stuff, which creates a bubble surge in the GDP, making it look like we are better off. The long term effect is a devaluation of currency and increase in prices, which destroys savings and costs the poor more money. That this isn't evident to most is what makes it a "hidden tax" and it effects the poor the most.

    Ron accurately describes why this is a bad thing to do.

    Further chaining it to the CPI makes it even worse as the extra bills brought on by currency expansion will make people look like they have more wealth than they truly do, which will increase their taxes and take even more money from them. Now our money is not only worth less, we have less of it.

    The man seems to get it pretty clearly here.
    “Maybe I forgot to mention something to you: I don’t believe in queens. You think freedom is something you can give and take on a whim. But to your people, freedom is as essential as air. And without it, there is no life. There is only darkness.” -Zaheer

    "A man chooses. A slave obeys."-Andrew Ryan

    "There are three things the parasite hates: free markets, free will, and free men."-Andrew Ryan

  8. #7

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    Quote Originally Posted by PierzStyx View Post
    To quote:



    Cutting taxes without cutting spending is an old Keynesian trick. It requires a boost in the money supply to pull off. The tax returns people get are then used to buy more stuff, which creates a bubble surge in the GDP, making it look like we are better off. The long term effect is a devaluation of currency and increase in prices, which destroys savings and costs the poor more money. That this isn't evident to most is what makes it a "hidden tax" and it effects the poor the most.

    Ron accurately describes why this is a bad thing to do.

    Further chaining it to the CPI makes it even worse as the extra bills brought on by currency expansion will make people look like they have more wealth than they truly do, which will increase their taxes and take even more money from them. Now our money is not only worth less, we have less of it.

    The man seems to get it pretty clearly here.
    Please quote where Ron Paul specifically said was against income tax cuts without decreases in spending, because he HAS NOT EVER SAID THAT.

    You are correct that he has warned cutting taxes is not very effective or may not at all be effective when you don't cut spending, but he has never been AGAINST cutting taxes. Ever. Period. He will always be for cutting income taxes and don't you forget it.

    Ron Paul would very likely NOT support a tax cut that includes increases in spending, but a spending neutral tax cut, even though it may not have any real impact, would be something he would support.
    Last edited by dannno; 11-07-2017 at 02:00 PM.
    "He's talkin' to his gut like it's a person!!" -me
    "dumpster diving isn't professional." - angelatc


    "Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul

    "Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."






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