President Trump on Wednesday began the national campaign to reform and reduce the federal income tax. Now. This year.
It has been 31 years since President Ronald Reagan reformed and reduced taxes.
Over three decades, the Washington establishment has hiked taxes on working Americans while doling out special deals and loopholes for the politically-connected. Trump restated and focused his consistent message of the 2016 campaign: Too many Americans are without jobs, too many Americans are not seeing their incomes rise, and too many American businesses are kneecapped by our government's tax policies.
Lower taxes can restore America's historic growth rate of 3.5 percent or higher.
Reagan's tax cuts brought 4 million jobs the first year they were put in place (1983), and the economy grew an average of 4 percent a year for seven years.
Trump pointed out that if America grew at 3 percent a year rather than the anemic 2 percent a year for the next 10 years, our nominal GDP would be $16 trillion higher than our current path. Federal revenues would be $2.9 trillion higher, allowing tax cuts and/or debt reduction, plus workers would have $7 trillion more in wages and salaries.
Growth can erase the pain and lousy job creation of the last eight years.
The Republican leadership in the House and Senate have publicly endorsed moving the business tax rates from 35 percent — 19 percentage points higher than the developed world's average — towards 15 percent. Millions of small businesses that pay their business taxes through the personal income tax would also see dramatic tax rate reductions.
The time has come to bury the death tax once and for all, and to abolish the Alternative Minimum Tax that hits several million Americans in a web of confusion, complexity, and higher taxes.
The Republicans in Congress, together with Trump, are committed to doubling the standard deduction for individuals from $6,000 to $12,000 and for a married couple from $12,000 to $24,000. That is putting money back in the pockets of hard-working Americans. It also is a change that means 95 percent of Americans will not have to itemize deductions. Their tax returns might well fit on a postcard.
This is a big deal. And a good deal for American taxpayers.
Grover Norquist (@GroverNorquist) is a contributor to the Washington Examiner's Beltway Confidential blog. He is the president of Americans for Tax Reform.
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