The House version didn’t lower the top rate. Although, for somebody making more than a million dollars raising the start of the top rate to $1 million from the current $470K does provide them with almost 25K in tax saving equal to 20 median family income saving.
I think it is possible if they take best part of each chambers bill to make less favorable to the rich and little fair to the upper-income folks in the coasts. So for instance, allowing a deduction for taxes but capping at $10K is not unreasonable, keeping the upper rate 39.6% and several other things.
I don’t know if it’s enough would make it 20% less evil so that Kyrios would support it. I won’t bet money this will happen though. As I said at the beginning of the thread, there is no economic justification for a tax cut with today’s economy, and it is bad public policy because running a big deficit during good economic times is very dangerous, because what do you do during another recession. So I really can’t get aboard supporting the tax cut, even while I like most of the reform aspects of the plan. I agree with Sharpe it is really awful policy to borrow money to give everybody a tax cut, that future generations will have to repay. Thank God interest rates are low.
I’m genuinely on the fence about the corporate tax cut. I think we need a lower rate to remain competitive, but I share the skepticism that much of this will trickle down, on the other hand, cutting corporate tax has worked for some states and countries, and we all could be wrong.
But my comments are mostly on the politics of the plan. Don’t believe the Democratic talking points that it is only a tax cut for the rich. That’s really not true, it is a tax for everybody, and the rich benefit a lot because they pay most of the taxes. Congressional Democrats and the progressive press have whipped the Democratic base in frenzy predicting doom and gloom.
People have widely different ideas of fairness, I’ve seen folks making 25K a year be highly supportive of a flat tax. “Everybody pays their ‘fair’ share.” So the argument, “who cares that average family save $100/month, the multi-millionaires are saving $100,000” will often be met with a shoulder shrug. “Well duh, they pay more taxes, and you liberals lied and told me it won’t save me any money.” I predict it is going to be popular with the base, and among the vast majority of folk who see a lower tax bill. I’m dubious there is going to be a big clamor for repeal.