That's what people don't understand; the dems are counting on the sheeple's widespread "innumeracy." So, when you explain this to people, you have to make sure they understand that it means they'll pay their what they now pay, plus 1/2 of that amount.
I think it's the 15% bracket that get's hit hardest -- if I'm hearing this right-- don't they go from 15% to 28%?
The taxes will be bad, but worse will be the effect on our economy.
At least I think so. But here's a counter-argument we might expect to hear from the left:
"Since companies and individuals will pay higher taxes, there will be greater incentives for them to spend more of their profits in order to reduce the taxable portion. This will lead to increased capitalization and hiring. " Or words to that effect.
Besides the reduction in allowable deductions, and the difficulties such companies will face securing financing for large scale improvements, how does one answer such claims?
Just trying to prepare for future discussions.
That is an ignorant argument. Firms do not operate from a motive of reducing tax liability; they operate from a motive of maximizing postitive cash flow. Capitalization and hiring are cash outflow propositions. While capitalization can provide non-cash expense allocations that can reduce tax liability, in an environment of extreme uncertainty regarding financial "reforms" and new taxes, a financial manager would have to be insane to propose increased capitalization now.