Wednesday, October 19, 2016

Wanted: A Good, Pro-Growth Tax Plan

A note to GOP presidential nominee Donald Trump
and running mate Indiana Gov. Mike Pence:

Here is a tax plan worth closer study and certainly of
serious discussion: The Main Street Tax Plan, an idea
from the Hudson Institute, a conservative non-profit
think tank specializing in economic and foreign policy
issues. This tax plan would give a tax cut to nearly all
American taxpayers: $2,153 to a single person earning
$60,000; $2,020 to a couple earning $80,000; and $2,055
to a family of four earning $95,000. The middle-class
would be the plan's biggest beneficiaries, and would fare
twice as well as those in the lofty top 1% of earners.

The Hudson Institute's plan would expand the U.S.
economy by $2 trillion within ten years, according to
the nonpartisan Tax Foundation, which took a close look
at it. This tax cut would raise revenues by $679 billion
over ten years, and taxes on increased growth would
replace and exceed lost revenues in that time frame.

And that's not all: the Main Street Tax Plan would make
for 7% of increased GDP growth over ten years for every
$1 trillion in tax cuts. And the plan would do away with
the business tax deduction for interest paid, thereby
ending Uncle Sam's preference for debt-financing.
And the plan would streamline the tax code by cutting
back on the number of different federal taxes. This plan
would end the Medicare payroll tax and would fund
Medicare through general revenues. The $679 billion in
extra revenue would leave more money for Medicare
funding, not less.

Furthermore, the plan would maintain the deduction for
charitable donations and for the mortgage-interest donation
(for one home), while eliminating almost all other deductions
currently in force.

The Main Street Tax Plan concentrates on the typical Amer-
ican. There would be no ordained winners or losers.
So how about it, Misters Trump and Pence? Worth a look
to you? It is certainly worth a look to Americans fed up with
ever-escalating taxes and getting little or nothing for their tax


No comments:

Post a Comment