Many Americans are aware of President Trump’s upcoming plans to implement tax reform. As a matter of fact, according to chief economic adviser Gary Cohn, the President’s campaign for tax reform will commence on Wednesday in Missouri, as reported by CNBC. President Trump’s tax reform plan will benefit the nation as a whole, while allowing hard working Americans to keep more of the money they rightfully earned. However, paramount to the topic of tax reform is insuring that it does not go the way healthcare reform did. Success is critical.
First and foremost, President Trump’s tax reform plan consists of the following: enriching the American economy, decreasing taxes for the middle class, simplifying the tax code, and accomplishing all of the aforementioned goals without increasing the national debt or deficit. Any single American earning less than $25,000 per year or any married couple earning less than $50,000 per year will no longer be mandated to pay income tax. This reform will provide aid to a total of almost 75 million homes and allow those people to put the funds that would have gone to income tax to better use.
In addition to slashing income taxes for millions of lower income Americans, the President's reform simplifies the current tax code from seven brackets to four: 0%, 10%, 20%, and 25%. In doing so, the Alternative Minimum Tax, death tax, and marriage penalty will be no more. Finally, business owners will not be required to fork over more than 15% of their earnings to tax payments. People who work hard for their money should be able to keep it. High taxation places a strain on everyone.
Reports from Axios assert that White House staff members will approach tax reform differently from healthcare since the latter was such a horrific disaster. A different approach might not be such a bad idea. At some point, healthcare reform will have to be addressed, but in the meantime, it makes sense to go about tax reform in a way that is most likely to engender success. Apparently, a bill for the reform is currently in the works and Americans will hear more about it this upcoming week.
Very recently, Cohn made the following statements about the upcoming work on tax reform:
“Starting next week, the president's agenda and calendar is going to revolve around tax reform. He will start being on the road making major addresses justifying the reasoning for tax reform and why we need it in the U.S.”
As the American people learn about the President’s tax reform plans, the media will too. Everyone knows the media makes sure to get as many hits in on President Trump as they possibly can. As far as the President’s tax proposals are concerned, news anchors are almost guaranteed to report negatively on it and highlight what they perceive as downsides. To their chagrin, President Trump’s critics will learn his tax reform is 100% revenue neutral and essentially pays for itself.
In order to fund the massive, long overdue tax reductions, the majority of loopholes and deductions for special interests and very wealthy people will be terminated, as will the avoidance of taxes by international businesses. Those who earn profit overseas will only have to pay a 10% tax rate.
During a town hall, Speaker Ryan confidently announced the implementation of tax reform would be easier than healthcare reform, as reported by The Hill. So far, that remains to be seen, but the Speaker of the House could be right. Tax reform is slightly less controversial than healthcare reform, and Senate Democrats may be more likely to support the reform instead of fighting it every step of the way as they did with healthcare. Ultimately, it remains to be seen.
This upcoming week will be interesting, to say the least. President Trump will introduce his tax reform to the public in a way that resonates with Americans. Everyone wants to keep more of the money they have earned, and therefore people on both sides of the aisle are more likely to view tax reform favorably. The revenue neutrality of the President’s tax proposals only serves to help his cause and generate support.
Unfortunately, there are certain people who will be against the President no matter what reform he introduces and no matter how good it may be. Those people are a fringe group and should be treated as such. It will be in President Trump’s best interest to not spend too much time trying to directly persuade his strongest critics, but to instead promote the merits and upsides of his tax proposals to the general public and Congress. This is what will gain the necessary votes to pass the bill.
High taxes are overrated and counterproductive. The government cannot handle the money of hardworking people more than the people themselves. Tax cuts allow hard workers to retain a greater percentage of the profits they’ve earned and provide tremendous aid to business owners.
The likelihood of tax reform being easier than healthcare reform is fairly plausible. However, it will require votes and support. More updates will follow as new developments arise.