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View Diary: I'll be the one to say it guys... (202 comments)

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  •  In this scenario, lowered corporate and personal (0+ / 0-)

    tax rates, effectively voiding the end of tax cuts for the wealthy and going back to a 39% rate in 2012, supposedly results  in higher tax revenues of $800 billion

    Reuters analysis

    The Republicans propose simplifying the tax code to eliminate loopholes and deductions, resulting in three income-tax rates.

    The top rate would be lower than the 35 percent rate currently in place, and as close as possible to a new, lowered corporate tax rate below 30 percent. This would minimize the penalty for small-business owners who file their taxes as individuals.

    Under this scenario, the government would collect $36.2 trillion over 10 years -- $800 billion more than it would collect if temporary tax breaks enacted under President George W. Bush were allowed to expire. Republicans say the additional revenue would come from a revitalized economy under a simpler tax scheme, not increased levels of taxation

    The certainty of lower tax rates is coupled with the pure conjecture of "a revitalized economy"-- and corresponding guesswork of rates of growth of GDP  -- over the next ten years.

    •  Plus (1+ / 0-)
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      the who could have ever predictedness of new deductions, loopholes, and "tax expenditures" sprouting anew like weeds. The fewer brackets and lower marginal rates would be unpossible to change, however.

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