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Skousen CAFE: Which Candidate Has the Best Tax Plan?

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Skousen's Investor CAFE
Which Candidate Has the Best Tax Plan?

By Mark Skousen
Editor, Forecasts & Strategies
03/03/2016
 


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"Taxation is the price we pay for failing to building a civilized society. The higher the tax level, the greater the failure.” -- Mark & Jo Ann Skousen, “Persuasion vs. Force.”

Taxes have been on the rise under the Obama administration since 2008, with higher rates on income and capital gains. When the government takes more, it means less money for private individuals to pursue their own best interests, or the interests of non-government organizations.

Will this trend reverse itself with a new president? Not if it’s Hillary Clinton or Bernie Sanders, who both want to increase taxes even further on income and capital gains.

All of the Republican candidates want to cut tax rates, but several -- Ted Cruz, Marco Rubio and Rand Paul -- want to create a new tax system on business known as a consumption tax or value-added tax (VAT). Both types of taxes would be bad news, in my judgment. Eventually, we would end up with both an income tax and a VAT.

Donald Trump’s tax plan is a step in the right direction -- cutting the maximum income tax rate to 25%, and reducing business and capital gains taxes to 15%. Remember, a tax on interest, dividends and capital gains is a tax on capital, the future of the economy. (See last week’s Skousen CAFÉ.)

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Too bad Trump doesn’t talk much anymore about his tax plan. It’s a good one.

Will these tax cuts cause the federal deficit to increase? Much of it depends on whether the next president can cut government spending. Frankly, I don’t see it happening with either Trump or Clinton. Both want to expand government spending, especially for the military.

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In case you missed it, I encourage you to read my Skousen CAFÉ from last week on the problems of a progressive tax. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.



You Blew It!
When Are You Going to Stop Murdering Plants?
By Mark Skousen

I recently attended a conference called “Anarchapulco,” in Acapulco, Mexico, where a couple hundred anarcho-capitalists gathered to smoke, drink and curse the state. I debated one of them but had little success in convincing them of the benefits of limited government. They want no government at all. I’ve won all previous debates with the anarchists at FreedomFest, but this time I lost badly. It is tough to argue with hard-core ideologues.

One of the speakers talked about “peaceful parenting,” but half way through her talk she switched her focus suddenly and verbally attacked those of us who eat meat. She said she was a vegan -- she avoids eating meat or fish, or dairy products. She showed a video exposing cruelty towards animals.

I didn’t stick around to watch the video, but I thought afterwards of going up and asking, “If you are so much against killing animals, when are you going to stop murdering plants?” After all, fruits and vegetables are living organisms too. Don’t they deserve to live out their lives? The typical response is that plants don’t have nervous systems like animals, so killing them is not painful. I’m not so sure. According to this recent report, plants do have feelings.

If one wants to live consistently with a peaceful lifestyle, vegetarians should become “breatharians.” That’s right, people who live on air alone, and avoid eating plants and animals! Years ago, I met Wiley Brooks, founder of the Breatharian Institute of America, who claims he can live and survive on air alone. Read his story here:  www.breatharian.com.
Good Investing, AEIOU,

Mark Skousen

Mark Skousen
Presidential Fellow, Chapman University
Wikipedia
Newsletter and trading services
Personal website
FreedomFest
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