Cut Taxes in 2017

Let’s Just Cut Taxes.  With yet another health care legislation disaster, it is time for the Congressional GOP to come up with another strategy.  At least, they will have one significant victory.  How about cutting taxes?  You don’t need comprehensive tax reform now but let’s begin the process.

If Republicans can’t even get a tax cut or reform, what good is the Party? And while tax reform is not high on many voters’ mind, growing the economy is. You can grow the economy by reducing tax rates beginning with corporate taxes. This is something even the Obama Administration agreed on when they proposed it as part of the 2013 budget. That was when they suggested lowering corporate tax rates.

Trump already proposed two bills similar to Ted Cruz’s for business tax. Additionally, he proposed what Marco Rubio did for individuals. Rubio’s plan has three rates just like the Trump plan. These are 35%, 25% and 10%. Additionally, there are generous tax credits for families and individuals with the idea of increasing their disposable income. One way to ensure this is deficit neutral is to cap deductions which benefit the wealthy. These includie home mortgage and state and local tax deductions. The latter benefits many leftist rich donors who live in blue states like California and New York.

Some have proposed increasing the capital gains taxes in exchange for lowering corporate rates. Plus, you can add a sequester on non-defense spending to reduce spending. We do need to increase defense spending. This allows, not only a reduction in the marginal tax rates for business and individuals, but pays for increasing tax reductions.

Spending cuts on non-essentials and lowering tax rates while reducing some deductions, which benefit the wealthy, can actually increase government revenue. This reduces deficits and increases economic growth. The latter is important for voters. Since the 2007/09 great recession, growth has been mediocre and the new normal has not produced enough growth to benefit many Americans who saw their income stagnant or decrease. Achieve 3% growth, if not higher, and it will lift more Americans income and give the GOP a chance to keep their advantages in the Senate and House. Additionally, increased growth in 2018 could give the GOP a chance for a veto proof Senate.

In an interview I conducted with Fox White House correspondent Kevin Corke, he noted that among Senate Republicans, there are 42 believers and 10 who are either waiting to see which way the wind blows or simply oppose the more free market approach to our problems.

The one issue that should unite at least 51 Senators is taxes. If you can’t get health care done this year, why not taxes? Having one victory in 2017 that will help grow the economy will give the GOP enough time to deal with other issues.


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