Trump Following Reagan’s Successful Example on Taxes

Trump Following Reagan’s Successful Example on Taxes

President Trump’s announcement of the outline of his tax reform plan, and the establishment reaction to it, made it seem like 1981 all over again.

Once again a President boldly offered much-needed tax relief and once again the establishment responded by saying that Washington needs that money more than taxpayers do.

Trump has done Reagan one better by combining tax reform (which Reagan delayed until 1986) with his tax cut plan so as to make our taxes both lower and simpler. The standard deduction will be doubled, allowing many more Americans to use that instead of itemizing deductions. The seven existing tax rates, ranging from 10 to almost 40 percent, will be reduced to just three – 10, 25 and 35 percent. The repeal of the Death Tax will eliminate the need for bereaved families to deal with the IRS while grieving for a loved one.

An important point is whether this tax reform would have a major and positive impact on economic growth. We know that the US economy went from recession to rapid growth as Reagan’s tax cuts took full effect in 1983. We know that the economy responded so well to the Bush tax cuts that by 2007 tax revenues were what Clinton had projected for that year assuming the 2000 tax rates.

There is every reason to believe that Trump’s tax plan will generate a similar economic boom. Corporate tax rates will go from a maximum of 35% to just 15%, with the elimination of many tax loopholes which can divert investment into less productive uses. Repeal of ObamaCare’s tax on investment income and the Death Tax will also encourage investment and economic growth. Money held in other countries by corporations will be allowed back into the US at a lower tax rate, providing still more investment funds.

Last year the non-partisan Tax Foundation projected that a similar corporate tax reform would increase economic growth by 4%.

Lower taxes, simpler filing, faster economic growth. It worked for Reagan. It can work for Trump.

But it won’t happen unless Congress hear from taxpayers like us. The Washington establishment and their horde of lobbyists are already hard at work lining up votes against Trump.

You can call your Senators and Representative at 202-224-3121 (the Capitol Switchboard) and tell them to support Trump’s tax reform. If we do not make our voices heard, the establishment will quickly kill tax reform.

By: 
FedUp PAC Staff