Right and Left React to Trump’s Tax Cut Proposal

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Philip Klein in The Washington Examiner:

“Details matter, but this framework points to large corporate tax cuts, modest middle-class tax cuts, and potential increases in taxes for families that earn more than the middle-class but don’t quite qualify as wealthy.”

Mr. Klein outlines three missing pieces of information needed to assess the effect on households: by how much the child credit will increase, which income groups can claim these credits and what the income cutoffs are for the new tax brackets. “Without more details, it’s impossible to say how middle-class families would make out,” he writes. Read more »

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From the Left

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Senator Chuck Schumer of New York, the minority leader, discussed the proposal at a Capitol Hill news conference on Wednesday. Credit Al Drago for The New York Times

Amelie Ratliff in The Guardian:

“Those of us who will pay an estate tax have already enjoyed the enormous benefits of wealth. Do you, U.S. taxpayers, really want to give us another break?”

Ms. Ratliff is a member of a group called the Patriotic Millionaires, whose website describes its members as “high-net worth Americans, business leaders, and investors who are united in their concern about the destabilizing concentration of wealth and power in America.” She argues that millionaires like herself don’t deserve another tax break in this “time of staggering inequality.” One key to fighting inequality is a progressive tax system that includes the estate tax that Mr. Trump’s plan eliminates. Read more »

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Seth Hanlon in Fortune:

“One of the biggest and most costly proposals in the Trump-G.O.P. tax plan is a giant new loophole for wealthy business owners like Trump himself.”

Mr. Hanlon served as a special assistant to President Barack Obama for economic policy at the White House National Economic Council. He explains how Mr. Trump’s proposal to cut the tax rate for pass-through corporations would be a financial boon for Mr. Trump himself. “Through the Trump Organization, Trump owns more than 500 pass-through business entities,” he writes. “His new loophole would slash the tax rate on the profits from these entities by more than a third.” Read more »

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Jared Bernstein in American Prospect:

“You need to appreciate the distinction between tax cuts and tax reform. Believe me — that’s not just semantics. And part of the story is a big, portentous hole in the Democrats’ agenda: Progressives do not have a good, crisp, resonant answer to the question ‘What’s your great idea for reforming the tax system?’”

Tax reform, Mr. Bernstein reminds his readers, has come to connote something positive: closing loopholes, “cutting tax rates and broadening the tax base.” What the Republicans are pushing for, however, are tax cuts, not reform. Real tax reform, he argues, “must offset, not exacerbate, market-driven inequalities, and it must raise the necessary revenue to meet the many challenges we face.” And, in the spirit of offering a “good, crisp, resonant answer” to the problem of tax reform, Mr. Bernstein outlines a progressive tax reform plan that includes eliminating “wasteful tax expenditures” and adding a “minimum tax on foreign earnings.” Read more »

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From the Center

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Representative Kevin Brady, Republican of Texas and chairman of the Ways and Means Committee, at a news conference promoting the plan on Thursday. Credit Al Drago for The New York Times

Justin Fox in Bloomberg:

“Mainly, it just seems like a really great deal for people like Donald Trump and Jerry Jones.”

Mr. Fox explains why the pass-through tax cut is a “boondoggle.” He argues that there’s an “admirable elegance” to “running everything through the personal income tax code.” That elegance is sullied by “subjecting pass-through owners to a different, lower tax rate” than that of the corporate tax. Read more »

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The editorial board of USA Today:

“The ‘framework’ is not all bad, as many Democrats claim. […] But a lack of fiscal restraint, plus two unwarranted giveaways to America’s financial elite, make this version unworthy of support.”

The members of USA Today’s editorial board are concerned about two aspects of Mr. Trump’s tax proposal. The first is the additional debt — by some estimates more than $2 trillion — incurred by an economy that “doesn’t need this sort of borrowing-fueled fiscal stimulus.” The second, and “most egregious provision” of the plan, is an end to the estate tax. They ask, “Why should inherited wealth receive a more privileged status than wealth accumulated through work or entrepreneurship?” Read more »

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Continue reading the main storySource: New York Times – Politics

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