I don’t think that I can comment on the New York Times editorial excoriating the Republican candidates’ tax reform plans without defending the Republicans which is something I have no interest in doing. Suffice it to say that I’m confident that I can find at least four fatuous assumptions in every paragraph.
I’d rather question the Republicans’ assumptions. Why do they think that cutting the rates on the individual federal income tax will be good for the economy? I would think that if you wanted to boost economic growth by cutting taxes you’d want to cut the payroll tax rather than the individual income tax. Even that won’t help much. We import too much of what we consume.
This is as good a place as any to stick this link. Not really germaine to the tax question, but a reasonable survey of useful statistics. Skip the editorial musing, but focus on the data in the text and graphics nested within. Not encouraging.
http://www.zerohedge.com/news/2015-10-31/lipstick-ing-gdp-pig-amid-epochal-global-deflationary-swoon
A refreshing change from the predictions for massive inflation they have ben making since 2009. Anyway, to address Dave’s question, they won’t cut the payroll tax as it is only cutting taxes on the wealthy that will spur growth (they believe). Yet, our wealthy are wealthier than ever, and we aren’t seeing the growth that should produce.
Steve
So many subsequent blogposts. But when Dave gets back around to taxes I have some suggestions observations. I think the notion that the only thing Republicans see is tax cuts is overstated, and the notion of only tax cuts for the wealthy just flat damned wrong. But as I say, to many interim posts.
As long as the focus is on the individual income tax, cuts will necessarily be for the top quintile of taxpayers because the bottom 50% of earners pay very little in income taxes. The top 20% of earners pay about 80% of all federal income taxes.
At this juncture I don’t think we’re going to get much domestic economic growth by cutting the individual income tax. There will be some investment all right just not domestic investment.