4 ms·

Thats not the full picture though. You've got the rate changes and the increased standard deduction. Most of the changes you've mentioned are bad for upper midd

by jrs95 9y ago

Thats not the full picture though. You've got the rate changes and the increased standard deduction. Most of the changes you've mentioned are bad for upper middle income people who are going to benefit the most from the lower rates in the new tax brackets. Plus, lowered corporate tax rates are likely to drive prices on goods down as well. It seems that very few if any people will end up with a net tax increase. Seems graduate students at prestigious universities won't do well in the short run. But I have a feeling they'll probably be fine when they graduate and get six figure salaries. Overall, I'm still not a huge fan of the proposal though. Too many cuts for the rich and not enough for everyone else.

perl4ever 9y ago
I mentioned the increased standard deduction. That's a major factor in making it almost break-even. I'm not sure any reputable economist would tell you that cutting corporate tax rates will necessarily drive prices of goods down. If a business gets more money, there are a bunch of things they can spend it on besides lowering prices - they can invest, they can raise wages, they can put the money into dividends and buybacks. It seems like the way the stock market has been appreciating recently, that dividends and buybacks are what the smart people are banking on. The most direct way to cut the price of goods would be to cut sales tax - that isn't federal, but perhaps the federal government could induce states and localities to reduce or eliminate sales tax. If that could be done, then it would be an enormous boon to interstate commerce too. But of course the revenue would have to be made up through increasing income taxes. Anyway, if there was a political movement for this, I would like to join it - kind of the opposite of the flat tax, national sales tax, or VAT advocates.

by jrs95 9y ago

perl4ever 9y ago

I mentioned the increased standard deduction. That's a major factor in making it almost break-even. I'm not sure any reputable economist would tell you that cutting corporate tax rates will necessarily drive prices of goods down. If a business gets more money, there are a bunch of things they can spend it on besides lowering prices - they can invest, they can raise wages, they can put the money into dividends and buybacks. It seems like the way the stock market has been appreciating recently, that dividends and buybacks are what the smart people are banking on. The most direct way to cut the price of goods would be to cut sales tax - that isn't federal, but perhaps the federal government could induce states and localities to reduce or eliminate sales tax. If that could be done, then it would be an enormous boon to interstate commerce too. But of course the revenue would have to be made up through increasing income taxes. Anyway, if there was a political movement for this, I would like to join it - kind of the opposite of the flat tax, national sales tax, or VAT advocates.