Wednesday, December 20, 2017

The Tax Act's Marketer in Chief

President Trump advised Congressional Republicans to make their tax legislation palatable by communicating simply. the Washington Post reports. Talk tax cut, not tax reform. A big, beautiful tax cut. Biggest ever (well, not quite, but still pretty big.)

To his great credit, the President questioned the Walmart-pricing approach to setting tax rates. What's with this 39.6%, 38.5% nonsense?

Reportedly, the President feels the most marketable tax rates are multiples of five. Congressional Republicans didn't achieve that simplicity, but at least the new rates are free of percentage points.

1 comment:

Jim Gust said...

This is far from the biggest tax cut ever for individuals. Even tossing in the corporate cuts, this is far smaller than ERTA.

OTOH, Trump and company have compared this reform to the 1986 Tax Act, which was revenue neutral. So, it's a bigger tax cut than that.

$1.5 trillion over ten years is a rounding error in the federal budget.