:President elect Donald Trump wants to lower the income tax rate following in the steps of Ronald Reagan.
Trump wants to chop the top individual marginal rate to 33% from 40% as well as more modest cuts for those with low and moderate incomes and the corporate rae to 15% from 35%. What are we, chopped liver?
Trump claims his tax cuts are a job creator, a beautiful thing to watch. Clinton recoiled calling his tax plan “Trumped-up trickle-down”.
Republicans believe if you make it cheaper to invest, ultimately, companies are going to grow and hire more people. t is not clear that tax cuts are what made the economy in the 1980’s. Reagan spearheaded massive increases in defense spending – from $326 billion in 1980 to as much as $450 billion in 1987 – that rippled across the economy.
The lower taxes and higher military spending nearly tripled the national debt to $2.8 trillion by the time Reagan left office, stoking inflation fears that contributed to the rescission under President George H. Bush in 1990-91 after he pledged, “Read my lips, no new taxes”.
President Clinton significantly raised taxes and had larger job gains than Reagan. about 22 million jobs were created in the eight years Clinton was in office and the economy grew an average 3.8% a year helped in part by the high tech revolution that supercharged business productivity.
Despite tax cuts and the large surplus Clinton left G.W. Bush the economy slipped into a deep recession.
Need I say more?