Taxes and Regulations

            We may soon see a new entitlement piled on top of the mountain of entitlements contributing to America’s massive debt. This one may be named for the next president’s daughter. No, not Chelsea Clinton, but Ivanka Trump. If Trump is elected president, Ivanka will likely be the face of a new entitlement providing child-care tax rebates or, for those who pay no income taxes, an increase in the earned-income tax credit.

            Donald Trump is looking for ways to ingratiate himself with women. But does the cost of this new idea have to be piled on top of existing entitlements and social programs, the chief causes of the nation’s unsustainable debt? Trump says he will pay for his new program with a reduction in fraud and abuse. Wishful thinking. A drop in the bucket at best.

            Given our presidential candidates’ opposition to reforming Social Security and Medicare, there is only one way to reverse the stampede to national bankruptcy: Growth. Under President Obama GDP has risen by less than 2% annually. What we need is for growth to be 3.5% at a minimum.

            So how do we remove the impediments to growth we have seen under Obama? Two ways: tax reform and regulatory reform.

            Growth can only happen if the private sector creates new jobs. The single most desirable tax reform would be a reduction in the 35% business tax that has forced companies like Apple to move overseas to avoid this massive tax burden and major employers like Ford to move plants to Mexico to take advantage of cheap labor. Common sense reforms to reduce labor costs domestically would help, but nothing will persuade companies to remain in America more than tax reform.

            We must also reduce the burden of regulations that cost businesses billions of dollars in compliance and prevents start-ups from creating new jobs.  In 2015 the federal government wrote 5,712 rules and regulations totaling 81,611 pages. And that wasn’t even a record for an Obama Administration intent on regulating everything from smokestacks to puddles. This year will probably end up being worse.

            Taxes are necessary to run the government, and some regulations are needed to maintain order and safety for the citizenry. But government must stop micromanaging every aspect of our lives and just get out of the way so we can break the shackles of debt and get back to rebuilding a prosperous nation.