John R. Houk
October 24, 2017
President Trump’s tax reform has a
bit of everything beneficial from rich to poor. NOT JUST THE RICH as the
Democrats deceptively tell their listeners. Sensibly, along with the give there
is also some take. After all, tax revenue is what operates the government
whether every Joe-American likes it or not.
The Democrats and Left-oriented media obfuscate the reality
of Trump tax reform with claims it benefits only the Wealthy and harms the
Middle Class. That claim simply is not true because deductions benefitting the
rich are stream lined as much to wealthy as to all the other tax brackets.
Since the Wealthy pay a majority of the tax revenue, even with a reduced tax
rate the reduction in deduction choices still gives the Wealthy a punch to the
gut.
Talking about tax brackets, President Trump wants three
reduced from the present day seven brackets. Speaker Paul Ryan apparently wants
to add a fourth bracket aimed at the uber-wealthy most likely to kowtow to the
Democrats accusation of a tax plan only benefitting the rich.
The Original Tax Bracket Proposal (Source: TheBalance.com 10/23/17)
§ Lowest Rate: 12% (down from 15%)
§ Middle Rate: 25% (down from 28%)
§ Highest Rate: 35% (down from 39.6% - let’s just call it
40%)
If GOP Establishment Has its Way – The Fourth Bracket
TheBalance.com has an accurate
of the plusses and minuses of Trump Tax Reform with no pun intended, balancing
to the plus-side. SavingToInvest.com is
apparently running a constant update on where the Trump Tax Reform seems to be
at based on recent information.
The Heritage Foundation has
a fantastic analysis of the proposed Trump Tax Reform looking through the
eyeglass of Congress-talk with the term “Unified Framework”. The
Heritage analysis begins by detailing how tax reform will benefit Corporations
in the sense of benefiting the U.S. economy. The Corporation analysis is
written terms that we every-day Americans can understand. Then Heritage looks
at how tax reform affects us normal American individuals. I encourage you to
read it: http://tinyurl.com/yalz2k35
Today, we have an anti-growth,
complex and out-of-date tax code. President Donald Trump, Speaker Paul Ryan and
Senate Majority Leader Mitch McConnell made it clear before the November 2016
election that pro-growth tax reform would be a major legislative priority for
Republicans in 2017 if they were given the chance to govern.
Our tax code
currently suppresses American business growth, is far too complex for the
average citizen, and is full of cronyism. Accordingly, I encourage [you] to
stick to the following principles on tax reform: lower and simplify individual
tax rates, lower the corporate tax rate, permit “full expensing,” establish a
territorial tax system, and end cronyism.
The American people
gave Republicans control of the House, Senate and White House, and there is a
real opportunity to achieve comprehensive, pro-growth tax reform. Congress can
use this as an opportunity to pair tax reform with spending cuts in order to
comply with the rules of budget reconciliation and maximize the economic
benefits of tax reform. After all, the federal government has a spending
problem, not a revenue problem. (Hat Tip: HeritageAction.com)
JRH 10/24/17
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