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Presidential Tax Plans Comparison.


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You cannot simply take a static look at plans.   Adjustments must be made based of past impacts of tax policies.  Tax cuts or increases have always had an effect on jobs and growth.

http://taxfoundation.org/blog/comparison-presidential-tax-plans-and-their-economic-effects

  • Mr. Trump’s tax plan would substantially lower individual income taxes and the corporate income tax and eliminate a number of complex features in the current tax code.
  • Mr. Trump’s plan would cut taxes by $11.98 trillion over the next decade on a static basis. However, the plan would end up reducing tax revenues by $10.14 trillion over the next decade when accounting for economic growth from increases in the supply of labor and capital.
  • The plan would also result in increased outlays due to higher interest on the debt, creating a ten-year deficit somewhat larger than the estimates above.
  •  According to the Tax Foundation’s Taxes and Growth Model, the plan would significantly reduce marginal tax rates and the cost of capital, which would lead to an 11 percent higher GDP over the long term provided that the tax cut could be appropriately financed.
  • The plan would also lead to a 29 percent larger capital stock, 6.5 percent higher wages, and 5.3 million more full-time equivalent jobs.
  • The plan would cut taxes and lead to higher after-tax incomes for taxpayers at all levels of income.

taxfoundationjpg-8da6dd5939391e96.jpg

Edited by Highmark
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