Americans are suckers for the words "tax reform." They just know they'll have more money in their pockets because Trump promised.
They won't.
When today's politicians talk about tax reform, they're really talking about tax cuts for the rich. The rich understand items 1, 2 & 3 below, ESPECIALLY, the fact that their tax dollars do not contribute one dime toward paying the government's bills.
Naturally, they want to keep as much of their money as they can so they "support" legislators" who support tax "reform." And because of the complexity of the tax code and time constraints as well as intra party kerfuffle's, what comes out are tax cuts because " well, reform was just too complicated. We'll do better next time.
There are three indisputable facts 99.7% of Americans need to begin to learn more about and to understand concerning Federal taxation.
1. The U.S. Government is Monetarily Sovereign and is the sole issuer of U.S. dollars and can issue dollars ad hoc, ex nihilo without taxing or "borrowing" (the latter never occurs in any case).
Logic informs, that when you are the monopoly supplier of a currency created from "Thin Air" you have an infinite amount of that currency and can never, involuntarily, become insolvent. Only Congress and the President can 'will' the U.S. into insolvency/bankruptcy/default by refusing to approve appropriations. The Treasury Department could have zero balances in its tax accounts and the Federal Government would continue to issue its fiat currency.
All the government needs to complete the act of spending is an appropriation. No taxing to spend, no borrowing to spend.
Being Monetarily Sovereign (MS) means the U.S. (and many other nations including, Canada, England, Japan, Australia, Saudi Arabia, China, etc. but none of the Euro nations) ... enjoys the status of having a non-convertible, fiat currency, and a flexible exchange rate with NO DEBT IN A FOREIGN CURRENCY.
Americans MUST learn and understand this and the benefits of being MS which are:
(a) freedom from financial markets to pay the nation's bills,
(b) no financial constraints on the government to fund public purposes, especially funding to achieve full employment.
(c) having tax policies which aides in managing price stability (inflation), (ostensibly) manages income distribution, serves to create market incentives/disincentives, and forces ACCEPTANCE of the dollar.
(d) Eliminates the need for budget trade-off, e.g. robbing Peter's budget to pay for Paul's.
There are constraints on being Monetarily Sovereign such as:
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