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Friday, August 11, 2017

Retroactive Tax Cuts

There's a series of articles in the last few days discussing whether or not the tax reforms about to be taken up by Congress ought to be made retroactive to the start of 2017.  It would be nice to think that we could have tax cuts going back to last January, but it's far from the most important issue.  I would prefer if the details of the proposed tax cuts were to be debated instead.  Will there be a corporate tax cut and by how much?  What corporate tax loopholes will be closed?  Will there be a cut in capital gains taxes?  What will happen to personal income tax deductions?  There's more, but these, not the effective date, are the important matters on which to decide.

Hopefully, there is an effort being made right now to get some of the Democrats on board for the tax reform bill.  Even if the Democrats oppose the final bill by a margin of 90%-10%, that would be enough to assure passage.  The USA strongly needs this tax bill.  Let's hope that this time the GOP is focusing on getting it done and not on peripheral matters.

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