Thursday, March 30, 2017

Trump Says Tax Reform Is Next. Here Are 5 Things You Need To Know

SAUL LOEB/AFP/Getty Images
After President Trump’s devastating political defeat over Trumpcare – and his vow not to return to health care in its wake – Trump allies say that he will move next on tax reform. That was an open question, since Trump has also talked in sterling terms about a massive infrastructure bill that would dump $1 trillion into public works.
But given the Trumpcare political circular firing squad, will tax reform be any easier for Trump to ram through the Congress?
Here are five things you need to know.
1. Deficits Matter. One of the most prominent Republican talking points during the Obama era was that Obama had blown out the deficit – which, of course, he had. The national debt was $10.6 trillion when Obama took office; it was approximately $20 trillion when Obama left office. Tax reform – lowering the tax rate – will increase the deficit in the short term, even if the supply-side logic that economic growth will increase tax revenues pays off in the long term. That means Republicans will have to contend with a slew of headlines that suggest they’re blowing out spending, even if they’re just letting people keep their own money -- and that's if they don't use budget reconciliation. If they do use budget reconciliation, they will have to demonstrate that their plan won't increase the deficit over the next ten years. And the projected savings from Trumpcare ($1 trillion over ten years, supposedly) won’t be available as an excuse to cut taxes, since Trumpcare didn’t pass (and since that estimate was flawed to begin). Tax reform advocate Grover Norquist says that Trumpcare’s failure will only allow the top marginal tax rate to drop to 28 percent rather than 20 percent on this basis.
2. Trump Has Sent Mixed Messages On Taxes. --->
Read the rest from Ben Shapiro HERE.

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