The hardest thing to understand in the world is the income tax. Albert Einstein
If Albert Einstein couldn’t even understand the tax code, reforming the tax code is not only necessary, it is long overdue. This week, Trump announced sweeping and bold reforms to the tax code–adding to his positions on immigration and the second amendment. As Trump looks to bolster his campaign with concrete solutions, this reformative plan is a strong and bold step in the right direction to ignite job creation, spur corporate investment, and lessen the tax burden on the middle class.
Rush Limbaugh, Mark Levin and Grover Norquist have approved much of this plan and even referred to the plan as Reaganesque. In his plan, Trump outlines the following reforms, providing the lowest tax rates since World War II.
|Income Tax Rate||Long Term Cap Gains/ Dividends Rate||Single Filers||Married Filers||Heads of Household|
|0%||0%||$0 to $25,000||$0 to $50,000||$0 to $37,500|
|10%||0%||$25,001 to $50,000||$50,001 to $100,000||$37,501 to $75,000|
|20%||15%||$50,001 to $150,000||$100,001 to $300,000||$75,001 to $225,000|
|25%||20%||$150,001 and up||$300,001 and up||$225,001 and up|
The marriage tax, death tax and Alternative Minimum Tax would be eliminated.
The US Corporate tax rate, currently the highest in the world at 35%, would be reduced to 15%.
Corporations holding over $2 trillion in cash in foreign countries would be allowed to return this capital to the US at a one time repatriation charge of 10%.
Loopholes would be eliminated, charitable deductions and mortgage expenses saved, and deductions will be capped or removed that are redundant.
Although tax reform is a welcome and much needed solution, there must also be a strategy and iron will to reform government spending, waste and abuse. In recent news, The EPA, over 10 years, spent $92 million on office furniture, including an $817 pencil drawer; the IRS colluded with Elijah Cummings to target american citizens; $120 million in pension benefits were paid to government employees who were already dead; and the $1 billion Obamacare website still has “glitches.”
As Reagan once said, we don’t have a revenue problem, we have a spending problem. In 2014, the federal government tax receipts totaled a record-breaking $3 trillion, yet we are faced with a $21 trillion debt by the time Obama leaves office. Remember the debt clock? Watch it and weep.
Until the growth of government is curtailed, outdated bureaucracies are shuttered, and the fraud, abuse and waste is confronted and eliminated, these tax cuts will only provide a bandaid on the festering malignancy of government growth and power. Speaking of malignancy, the socialists on the left, like Hillary and Bernie, will continue to champion “free programs” costing tax payers an estimated $18 trillion dollars and choose climate change over creating jobs. Socialists do not create wealth, they redistribute it. So, how will these socialists/progressives pay for these freebies? Well, with $6.5 trillion in increased taxes, of course!
According to Trump, those that would pay 0% in tax affect 73 million americans who would send a form to the IRS simply stating, “I Win.” But, a majority of Americans keeping more of their hard-earned dollars, who have more opportunity with new job creation and corporate investment, will also be winners. Winning, no matter what the left says, remains an American ideal.