Article by Darius Urban
The long awaited GOP tax plan has been released, and here are some of the key details.
State and Local Tax Exemptions removed: States like Illinois and NY no longer will no longer be able to keep hiking taxes on their citizens to fund the whims and fancies of state employees unions.
Corporate Tax Cut from 35% to 20%: Gives a chance for small and large businesses to compete with the likes of the rest of the developed/developing world. Very good for a pro growth agenda.
Middle Class Tax Cuts:
- There are seven federal income tax brackets in today’s code that are taxed at 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.
- The House bill consolidates those into four brackets:
- 12% (on the first $45,000 of taxable income for individuals; $90,000 for married couples filing jointly)
- 25% (starts at $45,000 for individuals; $90,000 for married couples)
- 35% (starts at $200,000 for individuals; $260,000 for married couples)
- 39.6% (starts at $500,000 for individuals; $1 million for married couples)
- Increase in Standard Deduction: The standard deduction has been increased for individuals from singles to $12,000 from $6,350 currently; and it raises it for married couples filing jointly to $24,000 from $12,700. In other words, if you make le
The GOP has indicated surrender to the Democratic Party and the progressive left in the following ways:
- Property Tax exemptions retained: This means that property taxes of high tax rates will not be forced to change, enshrining theft on something you already own.
- Top Income Tax rate unchained: The GOP has waved the white flag to the left on the issue of giving value creators a tax break. The politics of envy have triumphed.
- Budgets will increase the debt: The GOP neo-keynesian mantra of hoping revenues will increase to keep up with government spending after a tax cut will most likely fail again, and without serious spending cuts, America will not be great in a few decades.
With many libertarians resorting to call members of the Republican party GOPinkos, it is easy to understand why. These tax cuts are good, but this is nowhere near enough. It’s ultimately a mixed bag. Republicans need to learn that catering to leftists is bad strategy as they will never like you. Republicans must renew their dedication to fiscal liberty. If that means we have gridlock until more principled economic conservatives get elected, so be it.