You make good points. With details, no caps and real numbers. You’re a breath of fresh air.
But do you see businesses (real ones, not lawyers etc - manufacturing ones) benefiting?
We’ll have to see Trumps’s response to this. It’s not exactly what I wanted to see, but it does cut taxes for many middle class earners and businesses. Small businesses as well, that have been struggling with excessive regulations and taxation. Like the one I shut down because fees, regulations, taxes of numerous kinds, insurance, and licenses made it not worth my time and investment.
Yes, but remember the effective tax rate for all corporations is just under 13%. No was of knowing, but I'd assume a 40% reduction in the gross rate would do at least the same in the net. So 13% drops to 8% or 9%. The long term benefit of that to the economy is probably exaggerated. Deregulation or the expectation of deregulation is probably more important.
The problems I see, the pass through rate of 25%, wonderful for very high earners, is inequitable. And will not only add to regulations, but will encourage creative accounting. And I think the estate tax elimination is problematical, particularly given the fact that the long term deficit hasn't been addressed. Nor has the step up basis for capital gains been addressed, so presumably it disappears.
More important, this benefits middle class taxpayers and below. That could be $50m some places, $100-$150m others. Before anyone questions that, in the evil blue states we want to stick to, several of which from the midwest elected President Trump, that's a couple of married school teachers, or a teacher married to a policeman or fireman. That will provide a boost to consumer spending. No huge benefits to high income, though there is in the 500m to 1mm range. They likely will spend discretionary income. I suspect the problem will be in that $50m to $250m range. I know, lot of money, but I'm not sure there's not much benefit there. In some ways not a big deal, but they also spend or invest increased discretionary income. And there are more of them. And I'm not sure much of the tax cuts hit there. I should note that though most of the talk has been about state taxes, I believe deductions for medical expenses and college costs disappear as well.
My real problem, if this is the sum total of 7-8 years of contemplation, shame on the GOP. Same with healthcare. And while I don't blame Trump for that, I don't think he's added much either.