Category Archives: income tax

Tax Reform Rescue Mission

tax reform

During a week of inspiring rescues, President Trump introduced his tax reform plan. The U.S. has the world’s highest corporate tax rate at 39%. As a result, over two trillion dollars is parked overseas in low tax countries like Ireland. Trump proposes a 15% corporate rate as ransom to rescue that cash and bring it home. Which in return will lead to growth.

Tax Reform

Of course Democrats don’t see it that way. To them it’s all just an elitist gift to the rich. Maybe, but Kimberly Strassel points out in the WSJ that Trump is an ideal pitchman for the plan. He’s rich but he’s also seen as a populist outsider:

Mr. Trump has defined himself as the protector of America’s forgotten man, an outsider to the swamp, an America Firster. The result is that he is uniquely qualified to sell a tax plan decried as “elitist” to average Americans.

In Missouri, Mr. Trump busted up the left’s class-warfare model. He didn’t make tax reform about blue-collar workers fighting corporate America. Instead it was a question of “our workers” and “our companies” and “our country” competing against China. He noted that America’s high tax rates force companies to move overseas. He directly and correctly tied corporate rate cuts to prosperity for workers, noting that tax reform would “keep jobs in America, create jobs in America,” and lead to higher wages.

Trump Tax Plan

tax plan

NYT headline April 27: Trump Tax Plan Would Shift Trillions From U.S. Coffers to the Richest

NPR April 17: “…around 45% pay no federal income tax”

Trump Income Tax Short Form

trump income tax

Two pages of the 2005 Donald Trump income tax return fell in to the hands of Rachel Maddow last week. On her show she played it for all it was worth. It turns out it was worth about $38 million to Uncle Sam in taxes paid on an income of $150 million. That’s an effective rate of  about 25%. The revelation made The Donald look good compared to accusations that he doesn’t pay any income taxes at all.

It also made him look good compared to Barack Obama’s 2015 effective rate of 18.5%, Bernie Sanders 2014 effective rate of 13.5%, and Mitt Romney’s 2011 rate of 14.1%

Even Van Jones called it a good night for Donald Trump.

The purloined returns showed up in the mailbox of journalist David Cay Johnston. He says he knows nothing. Revealing private income tax information is a felony.

Trump denies that he had anything to do with it.

Yellen Takes Off Training Wheels

151218-YellenJanet Yellen took the training wheels off the economy on Wednesday. After seven years of near zero percent interest rates, the Fed hiked rates a quarter percent.

Meanwhile, Congress passed a 2,000 page,  1.2 trillion dollar budget. That tacked another 157 billion onto the 18.5 trillion dollar national debt.

Yellen

On Friday the Dow dropped 370 points.

David Stockman says, “sell the bonds, sell the stocks, sell the house”. IBD wonders if the markets know something the Fed doesn’t.

The Donald Evolves

 

150807-trump-ballDavid Harsanyi at the Federalist thinks the first Republican debate was awesome. I agree. The field looked strong all the way down to Carly Fiorina on the JV team.

Then there’s The Donald. He refused a pledge not to pull a Ross Perot if doesn’t win the nomination. Why give up the leverage, he reasoned. Makes sense I guess. And he said he made Hillary attend his wedding by giving her money. Also believable.

When asked how he came to change his views on taxes and abortion he said he evolved.