Trump released his the outline of his much awaited tax plan. It was really vague, short on details, and those making the announcement often contradicted themselves in true Trump fashion. But, that said, Trump would eliminate the following deductions: 1) State and Local Taxes 2) Student Loan Interest 3) Tax Preparation Fees 4) Medical and Dental Expenses 5) Job Expenses It cuts a lot of taxes for America's wealthiest and is spearheaded by Wall Street insiders, and it does nothing to pay off the nation's debt as Trump promised to do in his first in his first term. Now, the question is does it get passed? I think it's like Trump's tax plan is like his healthcare plan. It's dead on arrival. He didn't have numbers, and you would think if you were announcing our tax plan you would have numbers. Trump didn't. If you live in a high tax state, your are screwed. He is reducing tax brackets from 6 to 3 and in effect making the tax code less progressive and more regressive. Your physician will pay a 15% tax rate, because he will form an LLC whereas wage earners will pay a top tax rate of 36%. Trump says his tax cuts will be paid for by a growing economy. That's pretty much a standard Republicans promise and rationale for tax cuts, but in the more than 40 years Republicans have made that promise it has never happened. Republican tax cuts have never been paid for by a growing economy. In effect, Trump is attempting to do what Brownback did to Kansas. Apparently Trump isn't smart enough to learn from the Kansas experiment. As a result of Brownback's tax cuts the State of Kansas has gone deeply into debt. Kansas has suffered multiple debt downgrades and is struggling to fund the state. It's economy lags its neighbors. So where does Trump's tax plan go from here? I think it's dead on arrival. I'd like to see tax reform. I think the corporate rate should be lowered. But I don't think this is it. I don't think this is what Trump promised. It's a tax cut mostly for America's wealthiest. Their tax rates would go from 39.6% to 15% while it adds trillions to the debt.
Here is a libertarian idea I would be fine with: no federal taxes, have the federal goverment bill the states for services rendered, the states figure out how to tax, let the best tax system win.
