This is from an article in today's WSJ. Dave Camp (R. Mich.), the chairman of the House Ways and Means Committee has proposed cutting the U.S. Tax rate to 25% for individuals and corporations from the current max rate of 35%. This policy seems to conflict with recent Republican moves towards Fiscal responsibility as tax experts predict that this cut would reduce the revenue that the government receives from taxes by $2 Trillion over the next decade. This also represents a net tax decrease for corporations so the only way to make this policy deficit neutral would be to:
-Collect more taxes from individuals
-Reduce government spending by $2 Trillion over the next decade. This is extremely ambitious considering how many conflicts are arising from Republicans recent efforts to cut $60 Billion in spending for this year.
In my opinion, this proposal actually takes us further away from Fiscal responsibility and a balanced budget. Tax Revenues have never recovered to the levels that they were at before the Bush tax cuts of the early 2000s. With the deficit continuing to grow, the quickest and easiest way to reduce the deficit is to maximize revenue while pursuing cost savings. This obviously does not pursue that objective.
No comments:
Post a Comment