Paul Ryan on This Week:
How can Congressional Republicans support this plan when it is not possible without ending in an increase on the much-vaunted "job creators?" As the loopholes are closed, the effective tax rate on high-income earners will rise. In order to pay for tax cuts for "families and small businesses," the effective tax rate on high-income earners MUST be higher than the current rate because the money being used to cut the lower-income earners' taxes is coming from the tax loopholes that high-income earners now enjoy.But here's the point I am trying to make here, George. We think the secret to economic growth is lower tax rates for families and successful small businesses by plugging loopholes.Now the question is, not necessarily what loopholes go, but who gets them. High-income earners use most of the loopholes. That means they can shelter their income from taxation. But if you take those loopholes, those tax shelters away from high-income earners, more of their income is subject to taxation. And that allows us to lower tax rates on everybody -- small businesses, families, economic growth.
Isn't that an egregious affront to Congressional Republicans who swear that raising taxes on job creators will cause them to stop hiring?
They plan to lower income tax rates on high income earners. Their pledge is to "broaden the base" (i.e. close loopholes) but lower the rates, keeping total effective tax burden equivalent to what it is now. Where they really get into trouble is when they claim they can keep tax burden on rich the same, lower taxes on middle class, AND STILL remain deficit neutral. You need all three parts to make the math impossible.
ReplyDeleteRight, that's what he's saying they're going to do. I forgot to include the question from George Stephanopoulos, but he asked how they would pay for the $5 trillion tax cuts they had proposed, and that was his response.
ReplyDeleteThe *real* issue: Who is this omniscient Cerpin , and why must his identity continue to elude his faithful sheeple ...
ReplyDeleteHis? Or Her?
ReplyDelete