Sunday, November 1, 2015

Republican Tax Plans: Puppies and Rainbows Indeed

Unclear on the concept: We want taxes lower on the rich for when it's our turn. Right.

Josh Barro wrote a bit in the NYTimes that presaged last Wednesday's GOP primary debate, which was followed by scads of articles debunking the various candidates' tax plans. Barro crafted a good description of them:
In March, Senator Marco Rubio announced a tax plan that I called the “Puppies and Rainbows” plan because it’s full of things almost every Republican likes. Mr. Rubio, as laid out in a proposal he developed with Senator Mike Lee of Utah, wants big tax cuts on capital income that are supposed to encourage investment, including a tax rate of zero on capital gains. He also seeks big tax cuts for middle-income families, most notably an increase in the child tax credit to $2,500 from $1,000.
That is, you can think of “puppies” and “rainbows” as shorthand for two of the policy aims of tax cutting. One aim is to return money to ordinary families to raise their standards of living — for example, by making it possible to afford to have nice things, like a puppy.
The other aim is economic growth, which Republicans hope to create when lower tax rates encourage people to work harder or invest more money. Unfortunately, tax cuts have not necessarily led to growth when we’ve tried them before. But negative past experience will not always stop people from chasing pots of gold at the end of rainbows.
The prize is pots of gold, which is what the rich are supposed to acquire from Republican tax plans. As for puppies for everyone, at least there will always be dog food if the rich continue to be so tight with their money. Trickle-down, my ass.

Quite clear on the concept: Some people's second home.

Note on the Democrats. Just for contrast, the Dems would raise taxes on the rich alongside tax cuts for the middle and lower classes. Bernie probably more than Hillary. Is that the opposite of puppies and rainbows? I suppose so. No, wait. The middle and lower classes might still get their puppies, it's just the rich that will have to forego (part of) their rainbows. Still pots of gold, just not so much.

Where is this bad for the American people? (The browns and blacks might get some free money. Oh noes!!)

No comments:

Post a Comment