Cut tax with an axe

The various versions of the GOP’s new tax scheme have not won overwhelming popularity. (I’m not keen on it, though it would be worth $1200 or so to me in the first year; all they did was shuffle a deck of tax breaks, and the new tax code is no simpler than the old one.) Why, then, are they so insistent on getting this passed? An actual political scientist of my acquaintance explains it in fewer than 280 characters:

The only one of these I’d question is #2: since when is the Republican Party concerned with the desires of its base?

4 comments

  1. McGehee »

    19 December 2017 · 10:22 am

    Something has happened to McConnell. I don’t know what, but for the moment I’ll refrain from looking a gift horse in the mouth.

  2. ETat »

    20 December 2017 · 7:14 pm

    So – you personally and others in mid-america states (unlike the coastal “elites” like me) are benefiting immediately from the new tax law – but you’re still repeating things from your party propaganda that is manifestly not true. [R] didn’t just shuffle a deck – they eliminated many unnecessary tax breaks that permitted the unproductive to use against the others. And it’s definitely much simpler – if only because multiple brackets got eliminated.

    Tell me, do you share a fundamental American value of lowering barriers for business enterprise? Then you gotta admit -lowering corporate tax will make it more attractive for business to invest and expand domestically, creating employment and revenue, which then trickle down to you via lower cost of living. Or you’re in denial of this basic logic of economy?

    I, too, am not entirely happy with the new law: I think it doesn’t go far enough. I am against progressive taxation in principle.

  3. CGHill »

    20 December 2017 · 8:00 pm

    I am persuaded that the most logical corporate tax rate is 0.0%. Zip. Zero. Nada. Bupkis.

    Kevin D. Williamson in NRO:

    It would not represent a tax-free windfall to a bunch of pinstriped boardroom schmucks and Wall Street types and corporate shareholders. There are all sorts of things that businesses could do with that extra 40 percent of whatever they have left over after expenses. But if they pay it out in salaries and bonuses, whether to fat-cat executives or ordinary line workers, those people pay the individual income tax on that money. If they pay it out to shareholders in the form of dividends, the shareholders pay the capital-gains tax on that money. If it is distributed through other capital gains, the same thing applies. If it is used to acquire facilities or equipment, then that money becomes income for another company, which has the same choices about how to dispose of it. The money still gets taxed, but not until it hits someone’s bank account.

    (Source.)

  4. ETat »

    20 December 2017 · 8:58 pm

    Then what are you complaining about?

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