Monday, September 28, 2015

Trump's Tax Plan Is Not A Populist Plan

You didn't really think that Trump's tax plan would soak the rich and cut taxes for the middle class did you?  Of course not, you would have been right if you questioned the rhetoric he uses to sell his tax plan to the public. This article examines Trump's tax plan in detail and it is really a plutocrat's tax plan with populist clothing.  It is much like Jeb Bush's tax plan which cuts tax rates for the rich while throwing a few bones to everyone else.  Trump's plan even eliminates the inheritance tax.

Trump's tax plan is like Jeb Bush's tax plan in another respect.  It would reduce the government's tax revenue by trillions over the next few years.  Trump and Bush both use dynamic scoring to argue that the revenue lost from the tax cuts would stimulate the economy and increase the tax base.  In other words, it is the same old voodoo economics that started with Ronald Reagan's huge cut in the top tax rate.  George W. Bush used the same dynamic scoring scam to justify his cuts in the top tax rates and the reduction in the tax rate on capital gains and dividend income.  We are still waiting for the economic growth promised by Reagan and Bush.  Apparently, both Trump and Bush believe that the public will like their rhetoric, and that most of the public will not look at the details.  They are probably right.  Otherwise politicians would not keep using the same scam.

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