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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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      blueoasis

      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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