![]() ![]() Cut taxes now and then build political momentum for a tax reform and simplification agenda in 20. Republicans: don’t try to rewrite the 80,000 page tax code. ![]() The Trump tax cut can get us well over the 3 percent hurdle for years to come. Trump’s policies of lightening the burden of regulation and promoting American energy has already lifted the economy to 2.6 percent growth. No tax increase could possibly generate those kinds of revenues. With 3 percent growth rather that 2 percent growth, the federal government collects $3 trillion more revenues over a decade. Under that scenario, the debt burden shrinks as a share of our economy every year. We will never make progress cutting Washington’s deficits and debt with an economy growing at 1.8 percent as the CBO forecasters are predicting. The business tax cut is as my friend Larry Kudlow preaches often, is “a middle class tax cut.” As even the not-so-friendly Congressional Budget Office recently concluded, more than 60 percent of the gain from a business tax cut goes to workers in the form of higher wages.Īs for the “cost” of the tax cut, growth of the economy is a precondition to getting the debt down. Conversely, after Barack Obama raised taxes, the economy experienced less than 2 percent growth and deficits remained sky high. In both cases, similar tax rate cuts unleashed a spurt of prosperity and job creation and revenue growth. Republicans should also draw on the experience of Reagan and JFK. More recent polls are also showing majority support for a tax cut. Another 66 percent support the tax cut for families, and 75 percent support repatriation. An Investors Business Daily poll in May found that 55 percent of voters support the 15 percent business tax rate. Trump campaigned on and are popular with voters. The good news for Republicans is that the three components of this tax plan are all things that Mr. If one person’s taxes go up to pay for someone else’s to go down - there’s not much economic gain and the loser is going to make a lot more noise than the winner. President Trump himself has said it will be “the biggest tax cut since Reagan.” Revenue neutrality is a bad idea that will kill tax reform. Republicans are first and foremost a tax cutting party. ![]()
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