(KLTV) - Congress continues to wrestle with the reform of our tax code. Both houses have passed budgets, now they have to get into the weeds to hit specific line-item details that will affect every American.
The early headline is that personal tax rates are supposed to drop and the tax calculating process should be simplified. Everyone agrees with that, but questions arise when you start looking for details. The dirty little secret behind a reduction in personal income tax rates is that the government will still have to grab its money somewhere.
It is safe to say that government spending will not drop by the amount saved in lower taxes collected from American families. So, other tax creation or tax increases will most likely be rolled out on businesses and corporations.
Again, many Americans are fine with that but the balance sheet still has to – well – balance. Because of that final reality, our tax rates may go down, but know that other taxes may increase or new ones may be created. So, the real way to reduce the burden of taxes on Americans is to reduce the burden of government. Without significant reduction in the size of our government, tax reform will do nothing more than rob from Peter to pay Paul.