We end up subsidizing up through the middle income level as it is currently. Far better to let them keep more or all of their income and reduce subsidies than to discourage work by taxing it, even though we subsidize them elsewhere.
The way I’m seeing Trump’s plan at first glance is that the reduction in corporate taxes and business-only taxing of small businesses and contractors will give a significant boost to the economy.
Eliminating taxes up to the middle class will help to get the buy in needed to get the corporate reductions passed and into law.
He does talk about reducing spending as key to his plan as well.
Not sure I see the connection, but happy to listen to the argument.
Taxes are always a disincentive of some kind. Progressive income taxes are a disincentive to increased earnings. Less taxes is less disincentive. Flat tax makes all earners aware, by means of their pocketbooks, the cost of govt. I would be in favor of a flat tax, but that rate can be abused as well if spending is not curbed.
I would also favor a consumption tax replacement to the income tax, but again, that may be abused by large govt.