President Trump’s new tax proposal is pretty good. It’s not great, in the opinion of this consistent Constitutionalist, but it ain’t bad.
Naturally, the Democrats hate it. Ali Baba Schumer and his gang of thieves are using the same old tired argument, that it’s just tailored toward benefiting the rich and that “working families” will suffer should Trump triumph.
I think the last Democrat who was in favor of a tax cut was President Kennedy some 54 years ago. As much as we conservatives like to crow about the Kennedy tax plan, it wasn’t great. Oh, it sure did cut taxes, but it wasn’t what we think.
When we envision tax-rate reductions, our minds wander to low double digits and maybe a top rate for the wealthy of 28 percent, ala Ronald Reagan. Kennedy proposed a top rate of 65 percent and a corporate tax rate of 47 percent. Believe or not, these two figures were rightly considered a massive tax cut, as at the time, the top personal tax rate was 91 percent, and the corporate rate 52 percent. It’s staggering to even consider that a government would think it fair to confiscate 91 percent of one’s income. Of course, no one paid it, as there were hundreds of loopholes and carve-outs preventing such theft, but still, the number is astonishing.
Trump proposes three personal tax brackets at 12, 25 and 35 percent. He also proposes a massive corporate rate cut from 35 to 20 percent, which will be YUGE for corporations large and small and for repatriation. The worldwide corporate average is 23 percent.