Trump's Tax Plan Workable? : Relax, Breath Deeply, Think Clearly

I wonder why many of the other proposed tax plans from other individuals like Paul Ryan and Steve Forbes don't seem to gender such praise? I think the Trump tax plan needs more scrutiny and debate before we fall on our collective faces in worship.

This has an eerily resemblance to the environmental nutjobs computer models for climate change. Although this author does have street cred  for tax reform, where as the environmentalists are known for their grab for headlines and stuffing their bank accounts with tax dollars all based on fraud and corrupted and misleading information.

Still a lot of time to dig deeper into Trumps tax reform plan and the compare it to all the others. Step back and breath deeply, then move forward with common sense and educated logic.

Trump's Tax Plan
Source: Alan Cole, "Details and Analysis of Donald Trump's Tax Plan," Tax Foundation, September 29, 2015

October 5, 2015

Yesterday, Donald J. Trump released details of a tax reform plan. This plan would reduce individual income tax rates, lowering the top rate from 39.6 percent to 25 percent and creating a large zero bracket. The plan would also reform the business tax code by reducing the income tax on all businesses to 15 percent and eliminate business tax expenditures, including deferral and interest deductions.

In addition, the plan would eliminate the Estate Tax and the Alternative Minimum Tax. The Trump tax plan would: Cut taxes by $11.98 trillion over the next decade. However, the plan would end up reducing tax revenues by $10.14 trillion over the next decade when accounting for economic growth from increases in the supply of labor and capital.

Significantly reducing marginal tax rates and the cost of capital, which would lead to an 11 percent higher GDP over the long term, provided that the tax cut could be appropriately financed, would lead to a 29 percent larger capital stock, 6.5 percent higher wages, and 5.3 million more full-time equivalent jobs.

Cutting taxes would lead to higher after-tax incomes for taxpayers at all levels of income. The increased incentives to work and invest from this tax plan would increase the size of the economy by 11 percent over the long run. The plan would lead to 6.5 percent higher wages and a 29 percent larger capital stock.

In addition, the reduction of marginal tax rates on individual income would increase incentives to work and result in 5.3 million full-time equivalent jobs. These changes in the incentives to work and invest would greatly increase the U.S. economy's size in the long run, leading to higher incomes for taxpayers at all income levels.