Congress Doesn't Trust the Free Market -- Tries to Fool the American People
Once again, instead of suggesting actual tax reform, congress shows its disdain for the free market by once again re-arranging the deck chairs on the Titanic. Out here in the real world, we know that 70,000+ pages of tax code are going to sink this ship and just like clockwork, congress is looking to change things around again instead of enacting real reform.
Time and again history has proven that when you lower taxes across the board and simplify the tax code, more "revenue" makes it way to the government. When you decrease government intrusion into our so-called "free market", the people enjoy more freedom, they do more things, they spend and invest more of their money and as a predictable result, the economy grows.
Politicians that trust the beauty of the free market know this and champion elimination of or at least reductions in tax rates and compliance confusion. Politicians that don't trust the free market, however, do their best to try and fool the American people and our "free market."
They do this by introducing "pay-for's." A "pay-for" is a gimmick used when you decrease taxes or spending in one area of government, while seeking credit from those involved in that area of our economy, and quietly introduce increases in another area of the economy to "pay for" the "lost revenue" to the government.
Personally, I'm offended every time I hear the United States corporation refer to the money they confiscate from the American people as "revenue," but I digress.
As reported by Americans for Tax Reform, the "Tax Reform Act of 2014" is full of them:
Congress is always on the hunt for "pay-fors"--tax increases and spending cuts which can be used to offset other tax increases or spending cuts.
Unfortunately, there's a treasure trove of tax increase "pay fors" in H.R. 1, the "Tax Reform Act of 2014," which was introduced last Congress by former Congressman and Ways and Means Chairman Dave Camp (R-Mich.) One of these tax hike pay-fors is an elimination of so-called "like-kind exchanges."