Originally Posted By: Steelheadman

No a deficit is proof that somebody isn't paying their fair share. Frigging billionaires like Trump and Buffett spend little to nothing on federal income tax. It's like welfare for the rich. Trump wants to increase taxes on the middle tax and give rich old farts like himself a tax break. No wonder you couldn't get into the Stanford School of Economics Hank.


Sort of, but not really. What is a "fair share" and who determines that?

It takes money (and a good tax lawyer) to make money. As Maddow showed, in 2005 Trump paid $38M in taxes on $150M in earned income (25%) whereas Sanders paid 14% in 2014. Buffet paid around 11% in 2010. Most rich folk actively work to reduce their effective rate as much as possible. That is not a new thing. Nobody is stopping anyone from paying as much as they want to. The IRS will gladly take overpayments. To add, Trump will likely never recoup his campaign expenditures merely from tax cuts alone. The argument that he is doing this to give himself a tax break is rather invalid when he's already spent more to become President than he can recover from just tax breaks.

Zero or reduced deficits are achieved one of two ways. Either reduce government spending to match receipts OR increase tax receipts to match current levels of spending. Trump has reduced the deficit by over $100B in his first 2 months by reducing spending. Billy Clinton did the same when he and Newt worked together to balance the budget.

It all boils down to big government v. small government and it always starts with spending (not revenues). Taxes always play catch up and are adjusted up or down based on what the greater government vision is at the time of implementation (if at all). Bush II and Obama couldn't help themselves at the trough. Clinton and Trump have exercised a bit more restraint.

Trump's plan does call for elimination of the death tax ($5M+) which does help the rich, but it also eliminates capital gains (mostly a wash). Trump's plan does remove things like child care tax credits which hurt lower income families, but it also doesn't tax the first $24K in low income (another wash). Trump's personal tax plan will ONLY work if he also gets the business rate that he's after while keeping spending in control. Something has to make up the difference in lost receipts. That something is less government spending and more business investment (quasi business Trickle Down via investment). It'll work if he doesn't get us into another stupid war (TBD).

Again, Trump's plan is about simplification and cuts across the board for all brackets - which has been badly needed regardless of where you fall on the political spectrum. It hasn't been attempted by a sitting President in years and for that I applaud him.

Lastly, you are making be defend Trump. That sucks. He's an ass, but the man has the best business chops of any President we've had in office in our lifetimes. I trust that he knows a hell of lot more about taxes than either you or I, seeing how he paid more in one year than all of us combined across our lifetimes.

PS: Turn off NPR and write a bigger check next year. Pay whatever you feel is your fair share, which I assume would be more than you are obligated. Moral superiority achieved. Problem solved.



Edited by NickD90 (04/28/17 07:55 AM)
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