We had great fun reading Jeanne Sahadi’s article on CNN Money: Details Of The GOP Tax Reform Framework Revealed. We have some serious comments about the framework below but first a few snippets from CNN Money that reveal the interaction of CNN and GOP.
Here are some nuggets from Jeanne with [our comment]:
And even though the administration says it wants reform to offer middle class tax relief, the framework calls for a 12% bottom rate, which is actually higher than today’s lowest rate of 10%. But typical families in the 10% bracket today “are expected to be better off” when all the changes under reform are considered together, the blueprint says. [So why are there quotes around expected to be better off? Is it because it comes from the framework?]
[The Alternative Minimum Tax (AMT)] was originally intended to ensure the wealthy [nope, high income as it is not a wealth tax] pay at least some tax. [It has been a spectacular failure.]
Kill the estate tax: What Republicans refer to as the “death tax” only affects about 0.2% of all estates — and only those worth more than $5.5 million. [So it is not a death tax? Jeanne makes strong arguments
The hope [hope? Do you think business react to incentives or not?] is that the new system will make U.S. companies more competitive with their foreign counterparts, and that they will use more of their foreign profits to invest and create jobs in the United States.
It is just the usual tone you expect. Now on to the serious stuff. Our position is that we only care about business taxes in this reform period. So the personal tax stuff seems inoffensive but we really don’t care about it. We care about business taxes and find this proposal is a good one.
- It cuts corporate taxes substantially.
- It cuts business taxes.
- It switches to a territorial system.
No proposal is perfect but this is a good one.