THE GOOD (ACTUALLY GREAT)
A fifteen percent top tax rate for business and the repatriation of trillions of dollars of untaxed funds stuffed overseas is beyond good. And if there is a single President Trump tax proposal that should be embraced by progressives, this is the proposal they should embrace.
If corporate income is going to be taxed at 15% instead of 35%, corporate profits will explode. If corporate profits explode, the stock market should explode. Who are the largest holders of U.S. stocks?
Today, virtually every government pension plan is dramatically underfunded. These pensions have begun to squeeze state and municipal budgets and ultimately the required funding of these pensions will strangle the ability to provide public services in virtually every governmental organization in the United States. All services will be reduced including every public service, including police and fire. The thought of the tax dollars necessary to fund these pensions is absolutely mind boggling. The staggering amount of taxes needed would have to be paid through regressive taxes, sales taxes. There is no other source of funds that could make a dent in the state/municipal pension fund deficits.
Perhaps a reduction in the Federal corporate tax rate is the only way to right the governmental pension ship; those public companies are about fifty percent owned by the pension plans. A lower tax rate will increase the value of those stock portfolios and provide a onetime increase in the value for every pension plan in the United States.
The most monstrous and unforgivable legacy of progressive state and municipal governments is the unfunded government pensions that they have created. A fifteen percent corporate tax rate and return of trillions of dollars currently overseas may be the only possible solution to the progressive created problem of underfunded pensions.
And if there is anything wrong with the rest of America catching a break from higher stock prices, this author has no idea what it is.
And yes, a 15% corporate tax rate will keep more jobs and more business in the United States.
Winner, Winner, Winner.
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