Economy / Business
Nobody likes paying taxes. Unfortunately, President Trump’s proposals are projected to add another $10 trillion of debt over the next decade according to the non-partisan Congressional Budget Office. Cutting taxes without a viable replacement for the missed revenue would be unwise. The President believes that tax cuts would grow GDP to a 4% annual rate thus spurring economic activity and hence more tax revenue. This seems far-fetched as GDP would need to more than double today’s estimated pace, highly unlikely according to experts. We firmly believe that trickle-down economics doesn’t have a track record of supporting growth and financial opportunity that is broadly shared.
We do not support tax cuts for the wealthy, while raising rates on low-earners. That said, mortgage interest related tax deductions are regressive by nature and should be studied as to not subsidize mansions for the rich. We have outlined actions you can take to ensure the right economic policies are implemented taking everyone into account.
President Trump largely ran on a platform of economic change for the common American worker. Central to this change is tax policy, both for individuals and for corporations. President Trump has pledged to simplify the tax code and cut rates for the majority of filers. The proposal, put forward a few days before the 100 Day mark, envisions slashing the tax rate paid by businesses large and small to 15 percent. The number of individual income tax brackets would shrink from seven to three: 10, 25 and 35 percent, easing the tax burden on most Americans, including the president, although aides did not offer the income ranges for each bracket. He has also suggested eliminating Obamacare-related Medicare taxes, and capping mortgage interest deductions on expensive homes.
We believe voices need to be louder, and more action needs to be taken to ensure the conversation around tax policy is better informed.