In my tax proposal, I discuss a few of the many different types of taxes involved in our system. This past Sunday, I addressed two important issues involved with evaluating the income tax portion of our system. Congressman Paul Ryan’s budget released today indicates he agrees with my viewpoint on a few of the income tax issues, but not all of them.
Business Insider provided a succinct synopsis this morning summarizing a few related issues (click on links for full articles). First, the income tax rate issue covered in his budget does overlap somewhat with my recommendation for a more efficient income tax structure within our overall tax system, which would also offer the added benefit of serving as a short-term fiscal stimulus. Next, Jeremy Grantham recently discussed the benefits of focusing on fiscal policy, rather than more monetary stimulus.
My concern is that the excessive aspects of the proposed budget will make it more politically challenging in the future to adjust our overall tax system in a way that is both fairer and more efficient. There are ways to promote growth, while also helping the less fortunate. But threading the needle is tough.
On a final note, I would like to reiterate that my focus is on helping all folks. We have a complex system, which is why each issue needs to be evaluated both on an absolute basis as well as relative to other overlapping issues. I believe anyone who knows me would agree I care deeply about the US, and strongly believe it will continue to thrive. My main concern is on how best to move forward towards the goal of broad-based economic prosperity for all.