Politics

Senate Republicans Reach Agreement on Tax Reform

Tax reform is at the top of the Trump Administration’s agenda right now, and if we’re given what’s promised, you’ll be a very happy person come tax season.

The stock market has been on fire this year, and at least part of the gains are attributable to the prospect of large-scale federal tax reform that will, presumably, cut taxes for most Americans. Since the direction of the stock market is ultimately driven by earnings, a tax cut would increase stock prices simply by allowing more companies to bolster their profits.

It’s not just those invested in the market who will benefit from lower taxes. The American economy performs better with a lower overall tax burden, translating into lower unemployment and higher earnings for everyday Americans.

At the end of last month, Trump told a crowd in Springfield, Missouri, “this is our once-in-a-generation opportunity to deliver real tax reform for everyday, hard-working Americans. And I am fully committed to working with Congress to get this job done.”

At the time, he did not detail potential policies and rates, beyond saying he wants a 15 percent corporate tax rate, down from the current 35 percent.

Now, the Senate GOP has an agreed upon number: 1.5 trillion in tax cuts over the next ten years. According to the Washington Free Beacon, “Senate Republicans announced Tuesday that they have struck a tentative deal for sweeping tax reform, with tax cuts totaling $1.5 trillion over 10 years.”

The actual bill has yet to be written. But if the final product is revenue-neutral, meaning that it doesn’t add to the deficit, it will be able to pass with a simple majority vote.

While we don’t yet know how the cuts will be structured, Trump said as early as last week that the “wealthy will probably be where they are. If we can do that, we’d like it. If they have to go higher, they’ll go higher. We’re looking at the middle class and jobs.”

What do you think? Do Republicans need to deliver on tax reform? Do you want a tax cut? Tell us your thoughts below, and share this over Facebook and Twitter!

Matt

Matt is the co-founder of Unbiased America and a freelance writer specializing in economics and politics. He’s been published in The American Thinker, Rare, The Foundation for Economic Education, The Ludwig von Mises Institute, and National Review. He is the author of the new book A Paradoxical Alliance: Islam and the Left. Follow him on Twitter at @MattPalumbo12.

View Comments

  • Working People who pay federal taxes are in dire need of tax relief,asap.
    The States and Counties are killing Taxpayers with Income Taxes, Property Taxes, and General Excise Taxes, on top of mandatory registration fees, etc including Death Estate Taxes 40% by Obama ripping off next generation to benefit the elite crooked Politicians.
    Repeal Obamacare, kill IRS, Defund U.N. and expel U.N. from USA, Defund Israel, Kill death Tax, Cut Congress wages 50%, perks, too. Stop all federal welfare programs; stop all immigration for 10 years,and no welfare. Cut out TSA, BATF, IRS, DOE, etc all unnecessary. CUT CUT!!! Freedom and Liberty. MAGA !

  • Republicans are pushing for a $1.5 Trillion cut in federal revenue, at the same time that Republicans are pushing to increase military spending to $700 Billion.

    And conservatives like to talk about the National Debt. Yeah, right!

  • Cutting taxes is fine but we need to cut big government expenses significantly & have a voice in how they spend (actually waste) our hard earned taxpayer dollars!

  • I am not an economist, I am an average class working American, now retired. I stated in 1967 as a sophomore in high school "The best thing that could ever happen to this country is a flat tax. This tax is to be implemented when you SPEND your money. This includes every person and business in this country. There is to be only one exemption, a recognized religion. The paid employees of these religions would pay when they spend, but not the church itself.
    When you spend........You Pay.
    What would be the rate? I don't know the answer to that. I do think that somewhere around 12 to 15 percent would be great. This would include All taxes, local, county, state, and federal.

  • Unless you cut the corporate tax way down and taxes on small business way down, nothing will matter. Huge incentive for businesses have to be given in order that many come back from overseas and that it is profitable to start any business these days. If they had just implemented the "Fair Tax" and gotten rid of all income taxes, this country would boom. But, heck, that takes a brain and we all know we will have none of that in DC.

  • I JUST HAVE ONE QUESTION! WHEN WAS THE LAST TIME A POOR PERSON GAVE YOU A JOB? If there is no incentive for the "WEALTHY" to put more skin in the game, "IT WON'T WORK!"

  • CUT the WASTE!! We need to reduce the size of the govt by 30-50%, then further scale back the budget, plus pay down the National Debt. Let's start with a Balanced Budget Amendment!!
    MAGA!!

  • All I want to hear is that they passed the Fair Tax not some watered down , keeps the IRS going deal among the thieves. It's time the criminals had to pay the same taxes that the rest of us pay!

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