Hillary Clinton proposes doubling the child tax credit for children under 5 (from $1,000 to $2,000) and expanding the refundability of the credit to lower-income families. Her proposal 1) is expensive, 2) increases the deficit, 3) is unfair to childless taxpayers, 4) benefits a narrow group, 5) has an arbitrary cutoff, and 6) is just the beginning.
To broaden the tax base, lawmakers will need to do more than close obscure tax loopholes. They will need to limit itemized deductions. These tax breaks costabout $176 billion in 2016 or enough to finance a nearly 13% tax cut for every individual income tax bracket. And they add significant complexity to the tax code.
On July 1, the state of Vermont is set to impose a $1,000 per day per product fine on any food manufacturer who fails to disclose on the product label if any ingredients contain genetically modified organisms (GMOs). The effect of the new law will be to reduce choices for consumers, limit supply, and increase food prices. And these consequences will be felt far beyond the tiny state’s borders.
Donald Trump’s proposal to build a wall between the United States and Mexico has been widely criticized. But the Obama administration is building its own wall around the United States. The Obama wall is built of rules that inhibit U.S. firms from pursuing inversions to escape the punishingly high US corporate tax rate. Both walls will harm Americans.