The outline of the Republican plan for tax reform was unveiled today. It was met with an immediate counterattack by the mainstream media and the Democrats. Here's the problem: the outline of the plan is not enough for anyone to respond to the details of this tax proposal. That does not matter, however; we got all sorts of responses from the media and the Democrats. They are best described as "fantasy" responses.
Let me give you an example: The plan calls for three tax brackets: 12, 25 and 35%. Some of the Democrats and many in the media said that this will mean a rise in taxes for the middle class. After all, the lowest bracket is now 10% and it will go to 12%. Of course, this is silly; we have to know the size of the 12% bracket. Let me illustrate. If the 12% bracket covers all taxable income up to 30,000, it is much different than if that same bracket covers the first 100,000 dollars of taxable income.
Another example deals with deductions. Nearly every deduction is "on the table". The Democrats in Congress went crazy on that one. Nevertheless, until we know which ones the Congress chooses to eliminate, we cannot know how that affects the final bill.
Tax reform deserves significant debate across the country. It does not deserve phony arguments that may have no relevance at all. Rather than complaining, the Democrats should come forward with their own tax proposals.
Let me give you an example: The plan calls for three tax brackets: 12, 25 and 35%. Some of the Democrats and many in the media said that this will mean a rise in taxes for the middle class. After all, the lowest bracket is now 10% and it will go to 12%. Of course, this is silly; we have to know the size of the 12% bracket. Let me illustrate. If the 12% bracket covers all taxable income up to 30,000, it is much different than if that same bracket covers the first 100,000 dollars of taxable income.
Another example deals with deductions. Nearly every deduction is "on the table". The Democrats in Congress went crazy on that one. Nevertheless, until we know which ones the Congress chooses to eliminate, we cannot know how that affects the final bill.
Tax reform deserves significant debate across the country. It does not deserve phony arguments that may have no relevance at all. Rather than complaining, the Democrats should come forward with their own tax proposals.
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