Our federal tax code has got to be tossed into the trash and a new means of taxation utilized to fund the legitimate constitutional obligations of the federal government.
[mc_name name=’Sen. Rand Paul (R-KY)’ chamber=’senate’ mcid=’P000603′ ] is onboard with the notion as he is in favor of the Flat Tax(14%). So to is Mike Huckabee who stands alone, so far, with his support of the Fair Tax(complete elimination of income tax and replace it with a national consumption tax). Other GOP presidential candidates that are in the Flat tax camp include [mc_name name=’Sen. Ted Cruz (R-TX)’ chamber=’senate’ mcid=’C001098′ ], Dr. Ben Carson and former Sen. Rick Santorum all favoring some kind of a flat tax of around 10-20 percent.
[mc_name name=’Sen. Marco Rubio (R-FL)’ chamber=’senate’ mcid=’R000595′ ] and Gov. Chris Christie are of the trim around the edges variety lowering tax rates and the number of tax brackets while making various changes to tax credits, deductions, and the like.
You can add Jeb Bush to the trim around the edges camp when it comes to tax reform.
And to be perfectly honest the tax plan Jeb unveiled Wednesday in North Carolina is kind of pathetic.
Jeb badly wants to see the economy grow at 4% annually under his economic policy dream. If he is lucky he’ll have a couple of quarters of that kind of growth, nothing more. For comparison under President Obama’s tax and spend policies annually economic growth has been 2% or less and for many a quarter the Feds have had to probably do some fudging of the numbers to keep the economy for officially being called in a recession, again.
Under Jeb’s proposal the current 7 tax brackets with a top rate of 39.6% would be reduced to 3 with rates of 10, 25 and 28 percent. The corporate tax rate would be lowered from 35% to 20%. The repatriation of overseas profits would be reduced from 35%(highest in the world) to 8.75%.
Jeb would also eliminate the alternative minimum tax and the estate tax, also known as the death tax, but he would increase the Earned Income Tax Credit. By increasing the EITC Jeb would automatically be increasing the amount of money the IRS loses in fraud as the EITC is one of the most abused tax credits in existence. The Washington Examiner reported last year that the EITC lost up to $15.6 Billion to fraud and improper payments just in fiscal year 2013.
While Bush’s tax plan would eliminate the marriage penalty and increase the standardized deduction amount for individuals and families(nearly doubling it) his plan would also get rid of the deduction for state and local taxes(which is a really stupid thing to get rid of) and greatly decrease the amount that could be deducted for a home mortgage(again something very stupid to do).
Granted the repatriation tax reduction alone would be a massive boost to the US economy, long term sustainable economic growth that this country so badly needs isn’t going to come from these around the edges tax cuts.
When Ronald Reagan gave the American people one of the biggest tax cuts in US history our economy responded with nearly an entire generations worth of economic growth and prosperity.
Jeb’s tax cuts would barely be any better than the across the board, but still around the edges, tax cuts of his brother George W.
94 million Americans are not working today. Nearly 50 million are on food stamps. The welfare rolls and poverty have increased dramatically under President Obama.
Positive economic change isn’t going to come about simply because Jeb wishes it.
The American taxpayers need relief; they need the federal government(and state governments like Illinois’) to stop picking their pockets.
Some minor alterations around the edges of the tax code isn’t going to bring that relief.
Which is why if you aren’t talking about some kind of Flat Tax or Fair Tax(or dust off Herman Cain’s combination of the two) you are not serious about tax reform and really aren’t a serious candidate for President.
cross posted from USofArn.com