Trump Tax Reform Would Give Americans More Money To Spend

Is there anything wrong with a tax plan that would put more money in the pockets of Americans, money that citizens, and businesses, have earned? The NY Times has found a way

Trump’s Tax Plan: Low Rate for Corporations, and for Companies Like His

President Trump plans to unveil a tax cut blueprint on Wednesday that would apply a vastly reduced, 15 percent business tax rate not only to corporations but also to companies that now pay taxes through the personal income tax code — from mom-and-pop businesses to his own real estate empire, according to several people briefed on the proposal.

They really just can’t help showing their Trump Derangement Syndrome by making it a lede regarding Trump’s businesses saving on taxes. Guess who else who save on taxes? The four article writers, as well as the NY Times! Surprise!

Then we have the Washington Post, which takes a little more realistic and adult approach

Trump plan would raise tax deductions, lower corporate and small business rates

President Trump on Wednesday plans to call for a significant increase in the standard deduction people can claim on their tax returns, potentially putting thousands of dollars each year into the pockets of tens of millions of Americans, according to two people briefed on the plan.

The change is one of several major revisions to the federal tax code that the White House will propose when it provides an outline of the tax-overhaul pitch Trump will make to Congress and the American people as he nears his 100th day in office.

Trump will call for a sharp reduction in the corporate tax rate, from 35 percent to 15 percent. He will also propose lowering the tax rate for millions of small businesses that now file their tax returns under the individual tax code, two people familiar with the plan said.

White House officials think these changes will give Americans and companies more money to spend, expand the economy and create more jobs.

That’s pretty good, wouldn’t you say? Shouldn’t you be able to keep more of the money you earn? Republicans are discussing passing this through reconciliation, since Democrats are apparently not on-board with changing tax law so that citizens keep more of their own money and increase jobs.

Asked whether the 15 percent target was workable, Sen. Sherrod Brown (D-Ohio) told reporters: “It is, if you want to blow a hole in the federal budget and cut a whole lot of things like Meals on Wheels and Lake Erie restoration and then lie about the growth rate of the economy.”

He said that the Trump administration would have to do something “huge” such as scrapping mortgage interest deductions, adopting a border adjustment tax or relying on “outrageously inaccurate projections.”

Obviously, Democrats will scaremonger over having to *gasp* reduce overall federal government spending. And recommend raising taxes on citizens elsewhere. Of course, if people, and companies, are spending more, if more people are working and paying taxes, then more money flows to the government. Perhaps it is time for government to learn to do more with less, to live within its means, like citizens and private entities do.

It’s mostly a well written, rather neutral, informative article, well worth the read.

Crossed at Right Wing News.

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14 Responses to “Trump Tax Reform Would Give Americans More Money To Spend”

  1. Zachriel says:

    William Teach: Shouldn’t you be able to keep more of the money you earn?

    You’re not really keeping “more of the money you earn” if the tax cuts result in larger budget deficits. All you are doing, then, is borrowing against future earnings.

    • Dana says:

      That’s exactly right, and we should look to cut spending first, cut it not only to the bone, but start sawing into the bone.

      • Zachriel says:

        Agreed. First the American people need to reach agreement on the size of government desired, then find the means the pay for it. A smaller government means lower taxes, but fewer services.

  2. Jeffery says:

    The trump giveth and the trump taketh away. His Goldman Sachs plan is to gut US healthcare AND eliminate the ability to deduct healthcare expenses! Deductions for retirement investments and education? Gone!

    On the other hand the wealthy and corporations come out OK. He and Goldman Sachs drops the nominative corporate tax rate from 35% to 15% and the top marginal individual income tax rate by about 10%, so his own rates (LOL) and Goldman Sachs’ will drop.

    How did supply-side or trickle down economics benefit the working classes in the past? Not at all. This time will be no different. As with Mr. Reagan and Mr. Bush, trumpy’s tax cuts for the wealthy will add to the national debt and not help the working classes. In fact, as federal revenues plummet and fed monies to states and cities are cut, LOCAL taxes will necessarily be raised again to fund police, teachers, fire fighters, road repairs and street sweeping. And local and state taxes are notoriously regressive. Same old same old. The wealthy catch every break, the working stiffs get the shaft.

  3. drowningpuppies says:

    How did supply-side or trickle down economics benefit the working classes in the past?

    20 or so years of the greatest peacetime expansion of the economy in history.

    • Zachriel says:

      drowningpuppies: 20 or so years of the greatest peacetime expansion of the economy in history.

      The greatest period of economic expansion in post-WWII U.S. was during the Kennedy-Johnson years, followed by the Clinton years.

      • drowningpuppies says:

        Kennedy-Johnson years — Vietnam War
        Clinton years — middle of the expansion started during the Reagan administration.

        We’re y’all even alive during Reagan’s term?

        • Zachriel says:

          drowningpuppies: Kennedy-Johnson years — Vietnam War

          GDP growth was already very strong before war spending became a significant factor.

          drowningpuppies: Clinton years — middle of the expansion started during the Reagan administration.

          Growth was anemic during the HW Bush Administration. The longest peacetime expansion since WWII was under Clinton, though the latest expansion begun under Obama is nearing the record.
          https://en.wikipedia.org/wiki/List_of_economic_expansions_in_the_United_States

          • Hank_M says:

            Z, where in your wikipedia link does it support what you wrote?

          • Zachriel says:

            “Following a mild recession that ended in 1991, the U.S. entered into its longest period of economic expansion”.

            You can sort the list of expansions by length. From the longest, it is Clinton, Kennedy-Johnson, Obama.

  4. Hank_M says:

    And what does your link explain as the cause of Clinton’s expansion?

    But more importantly, where does your link support you writing “though the latest expansion begun under Obama is nearing the record.”

  5. Zachriel says:

    Hank_M: I know. They do that a lot.

    That wasn’t the issue under discussion, but the claim about a 20 year period of economic expansion.

    Hank_M: And what does your link explain as the cause of Clinton’s expansion?

    Two major factors was the building of the Information Superhighway as envisioned by Al Gore, and the reduction in federal deficits which increased available capital for private investment.

    Hank_M: But more importantly, where does your link support you writing “though the latest expansion begun under Obama is nearing the record.”

    The longest expansion since WWII was 120 months in length. The current expansion, begun in June 2009, is now in month 94. It would have to extend for about two years to set a new record. However, growth in the previous quarter dropped to 0.7%, so it’s not clear that the expansion will continue.

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