“IT’S TAX CUTS, IT’S TAX REFORM… WE’RE GOING TO HAVE TREMENDOUS NUMBERS OF JOBS POURING IN.”-– President Donald J. Trump
Will the proposed tax reform create widespread prosperity. Perhaps not, but why worry? Nothing bad could happen.
- Republicans will have a victory.
- High tax blue states will be punished; Democrats will take the blame.
- Corporations will have their tax cut.
- Wealthy families needn’t worry about estate taxes.
- The alternative minimum tax will be gone for the foreseeable future.
- People are reluctant to discuss their income, so complaints from those whose taxes go up will be muted.
- As we know, deficits don’t matter, if only during a Republican administration.
- Amounts withheld from paychecks for taxes can be reduced, which will make some happy.
- Some taxpayers will be happy with their tax bill (some of the savings will disappear in a few years).
Perhaps proponents really believe tax reform will bring about prosperity, but it’s still good if it doesn’t. Business interests and wealthy families have much to celebrate, and there is reason to hope for more.
- In five years, if Republicans still control Congress, they can make temporary provisions permanent; if Democrats then control Congress, they can be attacked if they let temporary provisions expire.
- Deficit spending, should the deficit explode, can be addressed by cuts to SNAP, CHIP, Social Security, Medicare, and Medicaid.
- The 39.6% marginal rate might soon be repealed.
Critics may whine, but for keeping the plebeians happy, this “tax reform” is better than a circus.