Good question. But better late than never. If we can free up capital and let people keep more of the money they make this will be a very good thing for the economy. Just consider, what would you do if you could keep more of your own money? Send a kid to college? Buy a boat? Put food on the table?
In this country the private sector should be as large as possible. Government should be as small as possible. This is one of the things that defines the USA. Small government and free prices/free markets are in our DNA. Some loathe this and wish we would just sand off the corners of society and give in to an all encompassing welfare state. But that is not who we are as a people. We were born on the frontier and that spirit still courses through (many of) our veins. That eye for the horizon. That desire to push and create. To blaze trails. That is the American spirit.
And for that spirit to thrive the People need to be able see and keep the fruits of their labor.
And though we are not complaining, as at least it looks like we might be moving in the right direction on taxes for the first time in what seems like forever, Trump’s plan does not go far enough. The tax cuts should be deeper and we need to seriously cut spending too.
Roll back the state. Increase liberty. Provide room for the entrepreneur. Let the economy and the American people breathe.
I only wish that the GOP had stuck with the 15% corporate rate Trump has endorsed since the start of his campaign. At 20%, many nations will still be lower than we are.
The critics say that business tax cuts won’t work, but then why has every nation in the world — except the United States — cut their corporate rate over the last 25 years? The rest of our competitors are at 25%, and we are at 40%. This is a 15% head start program for China, India, Germany, Mexico and many of the nations with which we compete.
How stupid is that?
The Irish, I learned from talking to folks at Ireland’s public radio, are praying that America doesn’t cut its business tax. Ireland has a 12.5% corporate tax, one-third the rate of the United States, and American companies have sent tens of thousands of jobs to Dublin. With the Trump plan, many will migrate back.
There are 27 million small businesses that will benefit from the cut. This isn’t intended to enrich the owners but to recapitalize these businesses so they can expand and bring on more workers. It’s simple: You can’t have jobs without employers — and the more profitable the business, the more people it can employ.
And just to set the record straight, every time taxes have been cut in modern times, the economy has accelerated. That was true in the 1960s under John F. Kennedy and again in the 1980s under Ronald Reagan.