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.