Taxes, Part 2

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The goal is for tax reform is to be revenue-neutral–Tom Reed

Economic growth will pay for a majority of President Trump’s tax reform plan, …..–Treasury Secretary Steve Mnuchin

If tax reform is to be revenue-neutral, and business taxes are cut, individual taxes must increase to compensate. How would Tom explain that away, one wonders. I think the answer is obfuscation and voodoo.

  • What’s important is how much we owe. Tom may explain that marginal tax rates will be cut implying taxes owed will be less. But wait! If deductions are eliminated taxable income will increase so that any rate cut may not lead to a lower tax due. By muddling tax owed with tax rate, Tom may make an argument that will fool many.
  • If revenue is lost due to rate cuts, Tom might want to compensate by cutting SS and Medicaid benefits, a long-term goal of his.
  • Treasury Secretary Mnuchin says lower tax rates will be more than offset by increases in personal income. That’s voodoo economics. It is false, it has been tried, it doesn’t work. Those concerned with budget deficits had better not buy this argument.

Watch out for a move to eliminate estate tax. Few owe that, but elimination would greatly benefit the Trump family. Similarly, elimination of the Alternative Minimum Tax would greatly benefit wealthy individuals.

http://www.oleantimesherald.com/news/rep-tom-reed-meets-with-olean-area-businessmen-gets-u/article_88bcaad4-258c-11e7-869c-8f9c1b68a6b2.html

 

 

 

 

 

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About whungerford

* Contributor at NewNY23rd.com where we discuss the politics, economics, and events of the New New York 23rd Congressional District (Allegany, Cattaraugus, Chautauqua, Chemung, (Eastern) Ontario, Schuyler, Seneca, Steuben,Tioga, Tompkins, and Yates Counties) Please visit and comment on whatever strikes your fancy.
This entry was posted in Economics, Reed's Views, Taxes and tagged , , . Bookmark the permalink.

2 Responses to Taxes, Part 2

  1. groundhum says:

    We’ve heard all this before and it’s still malarkey, albeit proven malarkey after Reagan & Bush. So, this: https://twitter.com/RBReich/status/856639105609850880 .

    And US Chamber is a shill group for Chas. & David Koch! Oh, Tom…

  2. pystew says:

    It is important to understand how changing the Tax Code will affect us. We have published articles about reforming the Tax Code since Trump was elected President.

    The first one looked at one item in President Trump’s Tax Plan–How it affects Single Parents with Dependents.

    The next one was about Rep. Reed’s proposed “Simple, Fair ‘Postcard’ Tax Filing” at his December Town Hall Meeting in Barrington.

    Recently we published articles “Tom Reed at Glenora”, and William Hungerfor’s “Taxes”.
    .

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