Tornado Alley (PROG)

[OMOLIVES]

Actually the NPR piece is very fair and I really like how David Wessel approaches it. I am not a fan of Krugman and disagree with his spending approach..just not a fan of his..smart guy...but no.

The Author did a slight bias slip though....ever so slight..lol:

For example, NPR recently reported on the effect of eliminating a tax deduction for medical expenses. In our interview, Ryan downplayed the effects of this change.

"[The person claiming it] is typically a higher-income person. ... You have to make a pretty good amount of money before you can even enjoy the ability to use that tax deduction." - Ryan

NPR health policy correspondent Alison Kodjak has reported otherwise. In a Nov. 17 report, Kodjak noted that the deduction — which can only be claimed when medical expenses not covered by insurance exceed 10 percent of your income — is commonly used by many parents of disabled children and the elderly on fixed incomes.

"The IRS says about 9 million people take the deduction," she reports. "And their median income is about $55,000 a year."

That median amount is around $71,000 today...and any "senior" enjoying that type of income is doing fairly well:)

The deduction for disabled children would pinch a few..so correct. Here's the slip...:

Child Tax Credit: The law raised the child tax credit to $2,000 and created a non-refundable $500 credit for non-child dependents. The child tax credit can only be claimed if the taxpayer provides the child's Social Security number (SSN). Qualifying children must be younger than 17 years of age. The child credit begins to phase out when adjusted gross income (AGI) exceeds $400,000 (for married couples filing jointly, not indexed to inflation). These changes expire in 2025.10

A tax credit is much more favorable than a deduction given it is taken off what you owe instead of diminishing your reported income. So apply Wessel's approach to such. The deduction that was removed affects 9 Million payers...and the increase added in child tax credit affects 46 million payers. Including the ones affected by the deduction removal. Further..we are forgetting about SSI and disability payments/insurance. So that is the very slight slip:)

Now look at what Wessel points out regarding Corporate taxes and US Companies domiciled in Ireland. He fully understands the issue ..one that is a top concern. So understand this:

There are now 970 US companies in Ireland, employing 378,000 people directly and indirectly and spending more than €41 billion in the Irish economy annually. Meanwhile, Ireland remains the 9th largest source of FDI to the US with 500 Irish companies employing almost 100,000 people across all 50 states.

https://www.amcham.ie/facts-figures/

That is USD52 Billion. Yes..Ireland is a tax shelter. Our current tax rate is higher than Asia and Europe. Wessel understands this and also expresses maybe there is another way besides changing the corporate rate(lowering it) .

The tax brackets for individual and corporate are fine where they are..simple. But for Gods' sake...have to kill those loopholes that large corporations and very wealthy individuals are allowed to play. You gotta beat the accountants man..lol

The number one corporate issue to me is stock option packages tied to salary..and stock buybacks. Get rid of all of it...kill it. Not any employee ..ceo..management should be allowed that. Pay the CEO's..etc...cash and have it come right off the bottom line.

And stock buybacks should be gone along with that since they are tied to the hip. This political gaming needs to stop and instead get dead serious about something for a change.