The income tax is a twentieth-century socialist experiment that has failed. Before the income tax was imposed on us just 80 years ago, government had no claim to our income. Only sales, excise, and tariff taxes were allowed.- Alan Keyes
The government is not entitled to our money. Despite what we’ve all been conditioned to believe, every tax dollar we give them is a gift. If we were all thinking clearly we would start to question why we allow Congress to waste our money.
They’ve only doubled our debt, tanked our economy, and gotten fat off their efforts! If paying so much in taxes were good for the people we wouldn’t have crappy schools and a crumbling infrastructure!
So I say, bring it on Trump! America is ready for your tax plans!
As reported at MarketWatch:
The Trump-GOP tax plan just announced has the potential to affect retirement savers in fundamental, long-term ways that could be positive for many Americans. The plan is a long way from reality and is likely to see some changes before becoming law.
For now, here’s the thumbnail version:
• Corporate taxes fall to 20% from the current 35% (and some business deductions end), which is below the 22.5% average of the industrialized world.
• A possible one-time lower rate on repatriated corporate income held abroad, perhaps at 10%
• A 25% rate on “pass-through businesses,” whose owners now pay higher, personal income rates
• Three tax brackets — 12%, 25% and 35% — rather than the current seven
• A near-doubling of the standard deduction, the first dollar of income taxed, to $12,000 per individual and $24,000 for married couples
• The framework aims to consolidate the current seven tax brackets into three brackets of 12%, 25% and 35%.
• Eliminates most itemized deductions, but retains tax incentives for home mortgage interest and charitable contributions.
• Repeals the death tax and the generation-skipping transfer tax.
There’s more, such as a possible refundable child tax credit and the repeal of the estate tax, but let’s focus on what happens to the retirement investor.
If you work and make enough money to save, chances are you save into a 401(k) plan at work or put money into a personal IRA. So far, so good.
If you’re smart, you then invest that money in stocks DJIA, -0.15% and, perhaps, bonds and other securities. After all, you want your cash to grow faster than inflation, and stocks are the way to get that long-term growth.
Now, about taxes. Some will grumble that the corporate rate is low enough, or that the effective taxes paid by companies is low already.
But consider what a corporate tax cut means for retirement savers with investments in the stock market. Sure, lower taxes might mean more jobs. But one thing it means without a doubt is higher corporate income — money that goes to the owners of U.S. corporations.
So how can the obstructionist Democrats and RINOS complain?
Asking how a politician can complain is like asking how a baby can cry. It is all they know how to do. Especially when they’re hungry, and politicians are always hungry for of our money.
The ever eloquent Thomas Sowell writes on tax and behavior extensively.
Even when the particular tax cut proposal is to cut tax rates in all income brackets, including reducing tax rates by a higher percentage in the lower income brackets than in the upper income brackets, such proposals have nevertheless often been characterized by their opponents as “tax cuts for the rich” because the total amount of money saved by someone in the upper income brackets is often larger than the total amount of money saved by someone in the lower brackets. Moreover, the reasons for proposing such tax cuts are often verbally transformed from those of the advocates- namely, changing economic behavior in ways that generate more output, income and resulting higher tax revenues- to a very different theory attributed to the advocates by the opponents, namely “the trickle-down theory.”
- The people to come together and agree on anything.
- To be held accountable for their crappy decisions (i.e Obamacare)
- Anybody threatening their money supply.
As you can see, tax reform would do all three. People will be reluctant to fight each other if they feel secure in their personal life. Meaning a good supply of money and jobs. The third will fulfilled by doing the second; their spending will be lowered by holding them accountable for failed projects.
They don’t need to worry about the amount of money they collect because Trump’s tax plan will actually increase the amount of money that the IRS will collect. Just look at when the US cut taxes in the 1920s.