So the Trump tax plan has been “unveiled” — and by unveiled, we mean literally one page on one sheet of paper in 12pt font in bullets.
Still — I’m not going to knock him for that.
Frankly, what we have here is legitimately very good. To review:
Three tax brackets of 10%, 25%, and 35% — that’s it. Doubling the standard deduction which is a boon for working families. No “border adjustment tax” (thank you, ATR). Repeal of the Alternative Minimum Tax and the dreaded “death tax” (no taxation after respiration!). Rescinding the ability to remove your local property tax from your taxable income, which is a tremendous punch to the gut to Northeastern and Californian local governments who have overtaxed and allowed the wealthy to write off the tax burden for far too long. Lowering the business tax rate from 35% to 15% — something that will keep businesses from relocating to tax havens such as Ireland, not to mention a boon for those of us in the creative class.
This is a very good bill, folks (oddly enough, it mimics a great deal of what Jeb! proposed during this ill-fated primary campaign) — quite unlike the Gordian knot of the healthcare bill that House Republicans will more than likely send to the U.S. Senate (provided the House Freedom Caucus doesn’t go wobbly again).
Here’s the objective: 4% GDP growth. What we have currently is a bunch of banks sitting on assets gained during the bailout for no other reason than they are unsure of what the federal government is going to do on any number of fronts (healthcare being first among them).
If the Trump administration can knockout health care reform (even half a glass is better than nothing at all) and provide rock solid tax reform this summer? Expect the economic engines to be unleashed in a big way… and more to the point, expect Republican fortunes in 2018 and 2020 to increase dramatically as an economic renaissance takes flight.