FGGAM News just received this news release:
PEARCE STATEMENT ON PRESIDENT TRUMP’S TAX REFORM PROPOSAL
Washington, DC (April 26, 2017) NM Congressman Steve Pearce today released the following statement after President Trump released his plan to reform the tax code for Americans:
“Now more than ever, our nation needs comprehensive tax reform that offers simplicity for New Mexican families, opens up opportunities for businesses to flourish, and allows America to be more competitive in the global market. New Mexicans deserve a tax system that allows them to keep more of their hard-earned money. The plan announced today by the Trump Administration is a great first step towards achieving these goals. Many discussions and debates remain in Congress as we work to finalize a plan that encourages growth in America’s middle-class, attracts more businesses to enter the marketplace, and stimulates our economy on a federal and national level. I look forward to working with my colleagues in the House and with the Administration to ensure America’s tax code prioritizes the needs and priorities of New Mexicans.”
From Gary Bauer of American Values
Trump’s Tax Plan
Treasury Secretary Steve Mnuchin outlined today what he described as “the biggest tax cut and the largest tax reform in the history of our country.” Here are basic details of President Trump’s tax reform plan:
- Corporate and small business tax rates would be slashed from 35% to 15%.
- Individuals would see lower tax rates and the number of brackets would be reduced from seven to three — 10%, 25% and 35%.
- Individuals would also benefit from a doubling of the standard deduction, meaning couples would see their taxable income reduced by $24,000.
- The alternative minimum tax and the death tax would be repealed.
- All deductions, except for mortgage interest and charitable donations, would be eliminated.The left is already in full-throated attack mode. In the days and weeks ahead, you’re going to hear a lot about tax cuts for the rich and the deficit. Let me briefly address these arguments.
First, any decrease in the marginal tax rate will be attacked as “a tax cut for the rich.” There is an obvious reason for this — they are paying more in taxes. According to the Wall Street Journal, the top 1% of earners pay nearly 46% of all income taxes collected by the Treasury. The top 20% of earners pay 84% of all taxes.
Because so much of the taxes paid to the Treasury is paid by those people, the left will always attack any across-the-board cut as a “tax cut for the rich.” But as I have argued before, the problem in America is not that the rich earn too much. The problem is that there aren’t enough of them to pay for all the government the left wants.
For those still “feeling the Bern,” watch this video.
Second, the left will claim that you can’t cut taxes unless the plan is “revenue neutral,” meaning that it does not add to the deficit. Keep in mind that this is coming from the people who just doubled the national debt in the last eight years. Now they are attempting to sound like fiscal conservatives.
The problem is that the government has never accurately “scored” or assigned an accurate figure to the economic growth that results from allowing people to keep more of their own money. The left viciously attacked Ronald Reagan’s tax cuts, but the economy boomed under Reagan and revenues grew. John F. Kennedy also cut taxes to spur a weak economy.
Sadly, some Republicans, who had a Scrooge-like devotion to high taxes, joined the attack on Reagan’s tax reform plan. It would not surprise me if certain Republicans join the left’s attack against Trump’s tax reform plan.
This will be a huge battle. It is unlikely that even one Senate Democrat will vote for such a bold tax reform plan. So if a handful of “moderate” Republicans break ranks, like they did with Obamacare, they could scuttle tax reform too.
Breakthrough?
Today, the House Freedom Caucus, which represents dozens of conservative House members, officially endorsed an Obamacare reform measure backed by the White House and the GOP leadership.
While frustrated that the legislation does not do all they wanted, the Freedom Caucus said, “We are prepared to support it to keep our promise to the American people to lower healthcare costs. . . Our work will continue until we fully repeal Obamacare.”
It remains to be seen, however, whether a sufficient number of GOP moderates in the House are prepared to back the amended plan.
By the way, the United Nations warned the Trump Administration in a February 2nd letter that the repeal of Obamacare may violate international law. It seems the Trump White House ignored the U.N.
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