Trump’s Tax Plan

Wall Street Journal ^ | Sept. 29, 2015 7:21 a.m. ET | James Freeman

[Cringing Negativism Network]

Donald Trump describes his tax plan in a Journal op-ed, promising “four brackets: 0%, 10%, 20% and 25%. This new code eliminates the marriage penalty and the alternative minimum tax while providing the lowest tax rates since before World War II.” Mr. Trump adds that “this plan eliminates the death tax.” Also, he intends to “allow the middle class to keep most of their deductions while eliminating many of the deductions for the very rich.” And on the corporate side, “any business of any size will pay no more than 15% of its business income in taxes.”

http://www.wsj.com/articles/trumps-tax-plan-1443525711

[EternalVigilance]

Since a sales tax is not mostly hidden like the current Stupid Tax, the rate does look high, that’s for sure. But that is not in fact a commentary on the advisability of taxing this way. It’s a clear reflection of excessive spending.

Want a lower tax rate? Cut spending back within constitutionally-limited powers. Problem solved.

[mmichaels1970]

Love the FairTax plan. Sad that only Huckabee is on board with it.

[Cringing Negativism Network]

That is where we disagree.

Every other country in the world is paying attention to jobs, and stealing them from us.

Every other country.

[EternalVigilance]

Personally, I’m not a fan of the “prebate” notion, and would much prefer something much simpler and straightforward than what the FairTax proposal contains.

[EternalVigilance]

Because of our stupid tax system, those countries are advantaged, in the world market, and in our own, which is still the largest market in the world.

That’s what you’re missing.

[EternalVigilance]

Indeed.

[arthurus]

15% corporate tax is 15% too much.

The paragraph below is all a link to Richard Rahn's item in WT.

Many people, without thinking about it, like the corporate tax because they think it is a tax on greedy billionaires. In fact, the corporate tax is paid by consumers in the form of higher prices and by workers in the form of lower wages and fewer jobs. It results in less investment in new plants and equipment and fewer new goods and services — which is why most tax economists view it as a bad tax. Investors are also hit by the corporate tax, but they have many options, including investing elsewhere or just consuming their savings, which hurts economic growth and future job creation.

I am quite disappointed that Trump is for retaining the same system that has been reterding the economy for a century. Keeping things like they are, just diddling with the rates a bit, accomplishes very little long term. Congress and the president will raise the rates and add more brackets. These things have been done before.

Push for a Constitutional Amendment pegging the rate at 10% (I prefer 9%, but that's me) and eliminating the possibilities of exemptions, deductions, credits and any other modifications of the basic rate. That not only clears the deck for an economic upwelling but makes the condition permanent. It also ties every wage earner into the system and there is not a large pool of non-taxpayers who are an inevitable constituency for government spending due to the spending being perceived as coming from other people's money.

Another tax idea would be to return to the way government was financed in the 19th century. Abolish the income tax altogether and impose excise taxes and a uniform rate tariff for the raising of revenue only. That method , however, leaves a lot of room for the Congress to raise the tariff, stifling trade, and to use the excise the same way the income tax is used, for social engineering and micromanaging consumption.

Of course if the EPA is abolished, and the FDA restricted to guaranteeing weights and measures, a requirement of the federal government in the Constitution, is combined with killing business taxes, we would start a whole new immigration flood of American businesses and industries moving back on shore and foreign ones emigrating to the USA. Wages would rise sharply and automation would become mor necessary as there are simply not enough workers to staff all the industry that would come in.

Then if federally funded or mandated welfare were to be eliminated... WOW! China would be left economically in the dust of America in a couple of years.

[mmichaels1970]

Since a sales tax is not mostly hidden like the current Stupid Tax, the rate does look high, that’s for sure.

And when people point out the high rate, they frequently forget that all of the taxes that are going into the production of the product disappear. The producer is less burdened with taxation and regulation when creating the product. They can more simply focus on just making the product in the most efficient manner. So the end product comes off the line much cheaper.

Don't see the "stupid tax" going away just yet. At this point, I think Trump's proposal is the least stupid of the bunch. I'm going to continue to support the FairTax, but for me right now, this is going to end up being a fight for another day.

[EternalVigilance]

Maybe Trump could make a bumper sticker:

“Vote Trump! My plans are less stupid!”

:-)

[glorgau]

I’ll go along with eliminating the Alternative Minimum Tax (AMT). It’s just an unnecessary complication that generates too many gotchas.

[glorgau]

> The only fair tax is a tax based upon consumption.

I’m sure that drug dealers (and other nefarious types) are gonna pay sales tax. Not.

[EternalVigilance]

Maybe not on their drugs.

But they’ll pay when they spend their ill-gotten gains.

Which doesn’t happen under the Stupid Tax.

[PGalt]

Thanks arthurus. GRRRRRREAT ideas. BUMP!

[9YearLurker]

Please, try to grasp a bit of a hold on reality!

Trump isn’t so stupid as to chase after tax plans that aren’t going to get enacted—or get him elected. He is thankfully a more pragmatic man than that who will propose what can get him elected and what he can get through Congress.

A 15% corporate income tax is far better than a 35% corporate income tax, and all we need is whining purists to assure that Barry does get his third term after all.

Fortunately, Trump and, I believe a sufficient number of Americans, aren’t whining purists.

[GailA]

If he implements his socialized medicine what do you think that will do to the US Economy...just what 0’s has.

How does comrade Trump pay for this?? Socialist Trump for gov’t paid health care for all. So arrogant he believes he can actually make socialism work. Nearly 70% of Americans do NOT WANT socialized medicine. DID YOU NOT HEAR IT OR READ IT MR. TRUMP! Doctors are retiring early, hospitals have closed, small clinics no longer exist. Hospitals have cut staff, last time I was in the hospital we had to bring a pillow from home as they didn’t even have any.

https://www.youtube.com/watch?t=29&v=6inQmf96SYQ

[9YearLurker]

Trump isn’t advocating socialized medicine. He’s proposing a free market solution that, yes, does retain Medicaid for the poor.

Why post lies here?

[EternalVigilance]

whining purists.

As opposed to "whining impurists"?

Which is the real problem in our politics in this country, do you think?

Too much principled purity, or too much polluted, compromised, unprincipled impurity?

[EternalVigilance]

If Trump’s plans for health care are not socialist, there is no such thing as socialism.

Shoot, if Trump’s plan is not socialist (”Sorry conservatives, we have to take care of everybody!”) Obamacare is not socialism.

[mmichaels1970]

I’m sure that drug dealers (and other nefarious types) are gonna pay sales tax. Not.

They do buy houses, cars, TV's, and lots of things legitimately. They do walk into stores and checkout at the register. So I'd say, yes, drug dealers and other nefarious types most certainly will pay sales tax. As a matter of fact, they are already doing so at the state level.

[9YearLurker]

Trump has said that most of us would be covered in the free market, which he would make more competitive by adding interstate competition.

That is not socialism.