April 2017 – Ruminations

TWOFER: Tax and Health Care Cuts

Bryan Watson6 years ago01 mins

Trump has two top legislative priorities: “Tax Reform” and “Repeal the ACA”. Today, they intersected: his “Tax Reform” plan cuts exactly one tax from the ACA – the 3.8% Medicare tax on Net Investment Income for high-income taxpayers. It has long been a badly-kept secret that the driving force behind “repeal the ACA” has been…

CHANNELLING Behavior : Rewards and Punishments through the Tax System

Bryan Watson6 years ago02 mins

Channelling is an important element of the tax system. We have no other way of rewarding – therefore, encouraging – good behavior. And we can’t punish – therefore, discourage – bad behavior except by making it illegal, and our Constitution and other rights often prevent us from doing that.