Posted on 09/29/2015 6:24:50 AM PDT by SeekAndFind
Fiscal Policy: It isn't as ambitious as a flat tax or a national sales tax, but there's a surprising amount of sensible tax policy changes recommended in Donald Trump's tax reform plan released on Monday.
He's proposing the biggest reduction in tax rates since the 1986 Tax Reform Act under Ronald Reagan, and like the Gipper's reforms, this plan would cover the costs by closing loopholes. So, bravo.
Trump would cut tax rates across the board. The highest income tax rate would shrink from about 40% under current law to 25%. The top capital gains tax rate would be reduced to 20% from 23.8%.
The estate tax, now at 40%, would fall to zero. This plan also eliminates the hated alternative minimum tax and the marriage penalty tax imposed on working married couples.
Not many in the media paid attention to his call for a 15% corporate tax — down from the U.S. current world's highest rate of 35% — but this might be the most pro-growth reform of all.
Trump's rhetoric on growth was refreshing, too, coming from a candidate who over the last few months has sounded more populist and even progressive than conservative, at least when it comes to taxes and jobs.
When asked where the revenue would come from to pay for his tax reductions, he answered that the plan would bring more jobs and business to America — and he has history on his side.
He also said, "We have to start cutting costs" of government, and hallelujah for that: A presidential candidate who says that we can let people keep more of their own earnings and finance tax cuts by eliminating the insane waste and incompetence in government spending.
(Excerpt) Read more at news.investors.com ...
The article mentions two trouble spots in Trump’s tax plan:
1) His declaration that some 70 million households will not pay income tax under Trump’s plan. That’s close to two-thirds of the 110 million or so US households.
Every citizen should have a stake, even if minimal in the running of his country.
Already close to 4 of 10 Americans pay no income tax. Do we really want the top third in America bearing the whole burden?
2) Trump’s approach could build a political tidal wave of support in the future for raising income taxes higher and higher to finance more “free” services from government, because, after all, it’s only the rich who are going to pay the tab.
Jindal doesn’t like the plan, who knows more about pro growth taxes Jindal or Investors Business Daily.
Bobbi, that will be a Slurpy and a hot dog to go.
As usual, IBD is right. The plan cuts rates and closes off loopholes. That is good. But IBD is right that we can’t keep shrinking the tax base. The top third should not pay 90%+ of all income taxes. Its a recipe for disaster.
I think Jindal expresses the same concern that IBD made in that article.
Too many people will have absolutely NO STAKE in the running of this country.
“Every citizen should have a stake, even if minimal in the running of his country.”
Agreed.
I am leery of the meme that we should be pursuing “growth”, because that literally means the growth of personal debt.
Bankers want “growth”.
Humans should want an increase in savings and wealth, which is the opposite of “growth”.
“Growth” can bite me.
Let’s hear more from the RINO critics about how he doesn’t deliver specifics.
The big problem with this approach is that once you "close" the "loopholes" (aka eliminate tax deductions) in exchange for lower tax rates, the deductions are gone forever, but the democrats are more than willing to raise those rates back up to where they were and higher at their first opportunity.
RE: Let’s hear more from the RINO critics about how he doesn’t deliver specifics.
The moment ANYONE delivers specifics, it becomes a target rich environment. This is one of those.
I’m still waiting for the specifics from those advocating a flat tax — I’m looking at you Ted Cruz.
I don't like this:
"some 70 million households will not pay income tax under Trump-onomics."Everyone should pay taxes.
When my wife and I were in college and living on $200 per month (which I earned) we paid $5 per month in taxes, and, even under such hardship conditions, I considered that fair. It was.
In fact--naive though I was--I wrote a letter to the IRS (they had screwed things up) in which I said that the taxes I paid were some of the best money I spent.
At a federal level. People still have local taxes, school taxes, sales tax. like Popeye:
The Tax Man: Well, first of all, there's 17¢ new-in-town tax, and there's 45¢ rowboat-under-the-wharf tax, and one dollar leaving-your-junk-lying-around-the-wharf tax . .
I know retired people who own their homes and have trouble making ends meet just with their $5,000 year school tax.
Republicans created the current mess, Democrats exploited what the R’s created. Trump’s is probably the only workable plan that can FIRST get him elected. Once in office he can hopefully, slowly start to undo what the red & blue parties have done. Ref——http://theconservativetreehouse.com/2015/09/29/about-these-tax-plans-establishment-republicans-have-a-george-w-bush-tax-the-rich-problem/
Frankly, if he makes things so hostile and uncomfortable for illegals that they mostly pack up and self deport, I’ll let this one slide.
My only criticism is that unless you are destitute you should pay some minimal amount tax so you have skin in the game. Even a few hundred bucks a year. Other than that its a great plan.
The Stuart Varney show was a love fest for this plan last night. Herman Cain gave it a 7 out of 10 this morning.
Same here. I like Carson’s flat tax for exactly that reason. When less than half of us are paying the bill the incentive for the majority who are not to raise taxes and nourish the beast is sky high.
I’m not big on flat taxes. They sound good but usually its a tax increase. Simpson and Bowles being a perfect example.
Evidently Jindal understands that when a majority of citizens do not pay federal taxes they are incentivized to vote for politicians who will raise federal taxes to grow the beast. I thought this was self evident to conservatives but evidently I was wrong.
I am big on flat taxes. I am unalterably opposed to new taxes like Huckabees. The new taxes arrive, the old taxes never go away.
Unless you are a senior citizen supplementing your income with social security or a teenager living home with mom and dad, how does anybody survive making that little?
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