TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Wednesday, February 1, 2017

How Donald Trump Can Keep His Campaign Promises, Grow The Economy, Cut Tax Rates, Repatriate Offshore Earnings, Reduce Income Inequality, Keep Jobs In The U.S., And Reduce The Deficit

David S. Miller (Proskauer, New York), How Donald Trump Can Keep His Campaign Promises, Grow the Economy, Cut Tax Rates, Repatriate Offshore Earnings, Reduce Income Inequality, Keep Jobs in the United States, and Reduce the Deficit:

This paper discusses President Trump's tax proposals and the House Republicans' Blueprint, and makes a number of suggestions that would allow President Trump to keep all of his tax policy campaign promises and some others.


Buffett 2

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Unrealized appreciation held by wealthy taxpayers and wealthy decedents is low-hanging fruit for tax reform.

Posted by: AMTbuff | Feb 1, 2017 1:38:26 PM

And this would mark the end of Publicly Traded Companies. If I had a startup after this tax, there is no way they would do an IPO. These people are smart, they are not just going to sit idly by while the government taxes the bejeesus out of them. They will find vehicles to avoid a mark to market tax and it will likely cause a lot of problems.

Posted by: Jacoby Wyatt | Feb 1, 2017 1:51:31 PM

Maybe a special tax that taxes borrowing against your stock holdings would be appropriate if you own a certain threshold. But this would effectively kill off the idea of a publicly traded company. The billionaires of the world aren't going to just let you tax the ever living bejeesus out of them without moving their money somehow some way out of that tax jurisdiction.

Posted by: Jacoby Wyatt | Feb 1, 2017 2:07:11 PM

The problem with chasing low hanging fruit is that wealthy tax payers aren't trees. You can pluck it once, but the branch raises itself to prevent future pluckings. For an individual taxpayer like myself with a total tax liability measured in the tens of thousands, it isn't worthwhile for me to spend a million dollars on tax lawyers and use clever tricks to make my income less affected by taxation. For someone with a liability in the tens of billions, it's a no-brainer. It doesn't help that congress has made the tax code into a complicated mess for the purposes of social engineering, forgetting that people always chase incentives, not the intentions behind them.

Although I think simplifying the tax code would be a huge step in the right direction, the real solution is entitlement reform. We spend roughly a trillion per year on SS, another trillion a year on medicare/medicaid and another half a trillion on various other entitlement programs like disability, food stamps, etc. There aren't enough rich people or businesses to steal from to pay for all of it.

Posted by: Jim W | Feb 2, 2017 5:30:05 AM