Replies

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.

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.