Pssst. Super-Congress…Cut the Tea Party's Taxes

So we got ourselves a Super Congress…hopefully, Boehner will put himself, Paul Ryan, and Joe Walsh on it. I want the imperfect Tea Party freshman who allegedly owes child support to have a voice. They are all likely imperfect; I prefer one who has already been sullied, and argues well on MSNBC. But if not Joe Walsh, then tap Ron Paul.

Job #1 of the Super-Congress is Tax Reform. This is our best chance to simplify American tax policy so a second grader can explain it.

Crucial point: Grover Norquist is a good guy, but my main concern is not do taxes go up overall?

What I care about is: Do the Tea Party’s taxes go down a lot?

If we see overall tax revenues increase because GE is not getting green dollars, while all the small business owners are paying MUCH MUCH less – we have a winner. You hear that Pelosi? I just gave you some solace; render unto the patriots their due, and at least you can show your team some Fortune 1000 scalps. Of course they won’t donate to your team any longer, but you should only get donations from the lower classes anyway.

Let’s be straight forward about what we want to see in a new tax policy:

1. The bottom half of America must pay at least as much as they pay now.
2. The Wall Street investor class and the Fortune 1000 management can pay more.
3. The owners of small businesses across the US, the savers, the scrimpers, the Tea Party faithful pay MUCH LESS.

Because when we say “broaden the base, end the loopholes, and lower the tax rates” – the above is exactly what we really mean. And we can’t let Grover Norquist’s Tax Pledge screw us up.

Example: The idea of a special rate for capital gains sounds good, but it is ridiculous. Ask Grover and he’ll say it is, “double taxation.”

But, a small business owner is actually AN INVESTOR. He just invests in himself. And every dollar he makes that he re-invests in his own companies is no different than a Wall Street or Real Estate investor who takes profits and buys more stock or a new building.

You might not know this, but under current tax law (rule 1031) when a Real Estate investor sells a building for a profit, he pays NO taxes if he buys another building in 90 days.

But if a small business owner earns $250K in profit, he pays income tax on that before he can re-invest it in another business idea he has.

Let’s say Tom and his partner Steve have a string of frozen yogurt shops in their local market. Why should Tom have to treat his profts as income, if he wants to partner up and put money into an Internet startup with his nephew? Why should the IRS encourage Tom to keep building yogurt shops just so he doesn’t have to declare those profits as income? Why isn’t Tom as free to decide what to do with his profits as as any other investor?

Treating small business owners better than we treat real estate and Wall Street investors is an idea whose time has come. The Super-Congress should concern itself with cutting the Tea Party’s taxes and forget about everybody else.

If the Super Congress doesn’t dump truck loads of money at the feet of small businessmen, the Tea Party should RIOT. Even if it means just that the automatic cuts go into effect, every GOP congressman should speak on the house floor, not against corporate taxes, but against taxes on small business.

It is time for the GOP to dance with the ones who brung them. If it means the owners of main street get to pay less, Warren Buffett and the founders of Google should pay more.

And if Grover Norquist (and his donors) aren’t on board with “Tea Party first” thinking, then he’s really not for the right kind of Tax Reform.

It is time for Grover to take our pledge.