Did Donald Trump just unleash an economic bombshell that could out do President Ronald Reagan’s success when he cut taxes from 70 percent to 28 percent which generated, according to the Blaze, $30 trillion in goods and services? The result of Reagan’s tax policies was the largest economic expansion in modern history.
Is the Donald’s economic plan on the same level as Reagan’s and does it provide the necessary economic stimulus which will help eliminate the Obama years of sluggish economic growth?
For starters, under Trump’s plan, individuals making $25,000 and couples making less than $50,000 will be paying exactly $0 dollars in federal taxes. Instead, Trump has decided that the “very rich” would have their taxes increased and he would also close a myriad of tax loop holes.
For some conservative naysayers who feel tax payers should have some degree of “skin in the game” in order to feel connected to government, most moderate income tax payers would say that is a lot of hooey.
Under the ever growing tax burden of the Obama years and coupled with the Obamacare nightmare which has basically stripped any extra dollars out of their household budgets, a no-tax benefit looks pretty inviting.
Trump does suggest that under his plan, those paying no taxes would be required to file a one-page document to the Internal Revenue Service that simply states, “I Win.” That sounds like a burden any tax payer can live with.
For those who are wondering what happens if they are making over the individual and joint amounts of $25,000 and $50,000 respectively? According to the billionaire GOP presidential candidate, you still come out a tax winner, because according to his plan you will realize nearly a $1,000 savings.
So where will the money come from to pay for Trump’s no tax for the targeted zero taxpaying segment of society? The Donald believes that by cutting the corporate tax rate to 15 percent for all companies, the economy will realize a “Huge” boost. Will it come close to generating nearly 20 million jobs and causing a 20 percent surge in employment as Reagan’s economic plan did? That is a question that will be under some degree of scrutiny.
But examine his economic plan goals which are quite appetizing. For instance he reduces the current seven tax brackets to four. According to the Washington Post, “Those making $50,001 to $150,000 (or couples making $100,001 to $300,000) would pay 20 percent and keep more than half of their current deductions.” If you happen to be in the highest tax bracket of earning more than $150,001 per year, along with couples making more than $300,001, then your taxes would be reduced to 24 percent.
Take a look at the penalties which would vanish under the Trump plan. Middle class wage earners and small businesses would no longer have to deal with the unfairness of the “death tax”, “marriage penalty” or the alternative minimum tax. These tax penalties have put a crimp in the economic viability of America.
Remember those corporations that fled overseas to make and keep their money? Well, Trump wants them to come back home and bring their estimated $2.5 trillion that they are keeping out of America’s economy. He intends to slash these companies’ tax rates to 10 percent as a one-time benefit for returning to the homeland.
Like anything that has been associated with Trump during this presidential GOP campaign cycle, he has certainly not been afraid to be bold in what he proposes in his attempt to, “Make America Great Again.” America may just be in store for another Reagan-like economic boon.
Image: from Gage Skidmore; https://www.flickr.com/photos/gageskidmore/8566721433/