By Matt Rooney | The Save Jersey Blog
That’s right… New Jersey’s leading Trump skeptic is complimenting Trump! Mark your calendars. This is momentous.
Get the details here.
Is it a flat tax? No. And at some point soon we’ll revisit the whole idea of 0% tax brackets which I do not agree with. But I’m not a purest, and his plan would represent a major improvement for the U.S. economy both in terms of fairness and the final macro-economic result.
For now, just so you’re fully prepared (which is always my aim), most criticism from the Left is going to revolve around the use of a “dynamic analysis” to ascertain how it will impact the federal deficit. Some of the initially-lost revenue will be made up by the repeal of various shelters and loopholes – something which appeals to the Donald’s populist base – but also the very-accurate assumption that tax revenues will actually increase in the years following these proposed historic tax cuts.
I don’t care what Pope Francis tells you; it works! Every single time. In 1980, federal tax revenues came in at $956 billion for the last year before Ronald Reagan’s tax cuts. After Reagan’s cuts, “annual revenues over the next decade averaged $102 billion above their 1980 level.” Americans ultimately saw an increase of 72% in federal tax revenue (adjusted, of course, for current dollars). Deficit increases during in 80’s had more to do with built-in entitlement spending, and the cost of winning the Cold War, than tax cuts. I repeat: the tax cuts results in tax revenue gains when lower taxes increased job opportunities and salaries.
All fine and good. What the Donald still needs to work on?
We all know (and I suspect he’d agree) that the health care law is holding back our economy as much or more than the tax code as a whole, but on 60 Minutes this past Sunday, Trump stayed frustratingly vague, promising only that he’s “going to take care of everybody. I don’t care if it costs me votes or not.” Back in July when his polling ascent began, Trump pledged to replace Obamacare with “something terrific.” I have no ideas what that means, folks. All I do know? He actively and vocally backed socialized medicine until recently.
Fixing the tax code without a free market alternative to Obamacare is like restoring a car but forgetting to put tires on it. He doesn’t deserve your vote without one.